Fall in gas output at KG D6 hits RGPPL’s operation

Falling output at the Reliance Industries’ (RIL) KG D6 basin affected natural gas supply to Ratnagiri Gas & Power’s (RGPPL) 1,967 mw Dabhol power plant in Maharashtra.

Consequently, power generation has been stopped at the plant since February 21. Following this, MahaVitaran, which procures 95 percent power, stopped payment to RGPPL for lack of supply.

RGPPL may not be able to repay its debt if the gas supply is not restored.While RGPPL was allocated 8.5 million metric standard cubic meter per day (MMSCMD) of gas to operate plant at its full capacity, it received much less quantity during 2011-12 and during current fiscal.

Of the 8.5 MMSCMD of gas alloted to it, 7.6 MMSCMD was from RIL and 0.09 MMSCMD from ONGC through GAIL India at $4.20 million British thermal unit (mmBtu).

The project received an average 2.67 MMSCMD of gas. In last fiscal 3,095 MUs of generation was lost as the company received an average 6.3 MMSCMD of gas.

Till date there has been a generation loss of 8,387 million units while the loss in rupee terms will be about Rs 3,000 crore during 2012-13 as on date.

Many gas-based power plants in Andhra Pradesh are similar problems. Konesema Power, gas power project hit by lack of supplies from KG basin, has gone for debt restructuring.