Lanco says power plant to shut down if gas supplies from KG basin dwindle

The plants, which are currently operating at less than 38% of their capacity because of the supply reduction, may face further cuts in fuel as government squeezes-in Delhi's Pragati Power Plant and others as KG-D6 customers

New Delhi: Sounding a warning bell, private power producer Lanco has told the government that any further reduction in natural gas supplies from Reliance Industries' Krishna Godavari basin (KG)-D6 gas fields would lead to shutting down of power plants, reports PTI.

With KG-D6 field output dropping from 61.5 million cubic meters per day to 32.66 mmcmd over two years, the government has made a pro-rata cut in gas supplies to 25 power plants who were allocated gas from Krishna Godavari basin fields.

The plants, which are currently operating at less than 38% of their capacity because of the supply reduction, may face further cuts in fuel as government squeezes-in Delhi's Pragati Power Plant and others as KG-D6 customers.

Lanco last week wrote to Pulok Chatterji, Principal Secretary to the Prime Minister, saying it was neither technically nor financial viable for plants to operate at such low Plant Load Factor (PLF) or capacity and will shut down if there was any further cut in supplies.

Delhi government wants 0.93 mmscmd of gas for Pragati power, which had missed the bus previously because the project was delayed.

Lanco said the government was contemplating according higher priority to Ratnagiri Power Project in Maharasthra and Pragati Power project at par with fertiliser projects which would mean that pro-rata reduction will not be applied to these projects.

"In such a situation, the gas supplies to other power projects wil reduce to 20-25% level forcing them to shut down the power plants," Lanco Chief Operating Officer Rakesh Kumar Gupta wrote on 15th May.

While the KG-D6 gas supplies dropped, the pro-rata cut was applied only to the 25 power plants which had an original allocation of 28.90 mmcmd. Fertiliser plants, which were allocated about 15 mmscmd of KG-D6 gas, did not face such a cut. And now the government is contemplating giving Pragati Power and Ratnagiri Power the same status as fertiliser.

Ratnagiri Gas and Power Pvt Ltd, which operates the Dabhol power plant, has an allocation of 7.6 mmcmd from KG-D6.

Seeking Chatterji's personal intervention, Lanco said pro-rata reduction in supplies should apply on all consumers including fertiliser plants till KG-D6 gas supplies improve.

Lanco said the government had allocated gas from RIL's KG-D6 fields to power plant equivalent to their 70-75% capacity (Plant Load Factor or PLF).

With dwindling output from KG-D6, "gas supplies to power projects have been reduced pro-rata to almost 50% of the allocated quantity," it said.


Public Interest Exclusive
Anti-encroachment drive: Activists come together in support of BMC officer

NGOs and social activists have together written a letter to the BMC and Mumbai Police chiefs supporting the BMC staff for taking effective action against encroachments like hawkers and structures in Dadar station area

Leading civic activists and non-governmental organisations from Mumbai have lent their support to the civic body Brihanmumbai Municipal Corporation’s (BMC) assistant commissioner DK Jain who has been allegedly held responsible by a politically motivated union for the death of newspaper vendor during his anti-hawker drives around Dadar station following a Supreme Court order.
According to the rules—hawkers at no-hawking zone, hoardings at traffic signals and authorised slum structures where alternate accommodation is given—are deemed as encroachment and have to be razed down or evacuated by the civic body.

NGOs (non-government organisations) such as India Against Corruption, Mumbai 227, Flank Road Citizens’ Forum and Moneylife Foundation have together written a letter to municipal commissioner Sitaram Kunte and police commissioner Arup Patnaik supporting the BMC staff for taking effective action against encroachments from hawkers and structures and calling for a high-level understanding between municipal and police authorities to provide support while carrying out firm action against such encroachments.

“We, as voluntary organisations of the citizens also seek properly co-ordinated support from both authorities, to the staff of municipal wards and police stations, request both BMC and Mumbai Police co-ordinate actions of your staff to enable them to take effective steps against encroachments,” says the letter.

According to a news report, Brihanmumbai Vruttapatra Vikreta Sangh (BVSS), led by senior Shiv Sena leader Subhash Desai, had called municipal commissioner Sitaram Kunte with a demand that a First Information Report (FIR) be lodged against Mr Jain for the death of the vendor on 10th May after his illegal stall was removed, leading to a cardiac arrest. They alleged that Mr Jain had thrashed the vendor, which led to his death. The association had also called a day’s strike on 19th May demanding stern action against Mr Jain.

However, the BMC had refuted all allegations saying that the vendor died in hospital after his relative admitted him, when suffered the cardiac attack. 

Ashok Ravat, president of Citizens Forum, G/North and member of advance locality movement (ALM), Shivaji Park (Dadar), who is also spearheading the signature campaign, told Moneylife, “One ward (of BMC) has already contacted us for the help they require. Others will also seek assistance. Meanwhile, the movement is definitely gaining momentum.”

“This eviction drive has given complete relief to both pedestrian and vehicular traffic around the crowded Dadar station. The whole strike was politically motivated. The municipal commissioner himself has said on record that the cause of death has nothing do with the eviction drive,” says Nagesh Kini, member of Mogul Lane - Mahim, ALM, who is active in designing this signature campaign. Mr Kini has successfully collected 53 signatures and also written a letter to the municipal commissioner.

Bhaskar Prabhu, convenor Mahiti Adhikar Manch, a Right to Information (RTI) forum says that, “The BMC achieved what has been impossible in any other part of Mumbai that is in eliminating the hawker menace for a good six weeks. If we, the citizens fail to offer support, then cases of hawkers working with politicians and the police to attack and harass ordinary citizens who protest against them will only increase.”

The campaign is supported by eminent activists from various fields including Indrani Malkani, member of an ALM, GR Vora, a Mumbai-based RTI activist, Sumaira Abdulali of Awaaz Foundation and Ashok Datar, a well know transport activist, among others. 

“With the support of citizens, G/North ward staff now feels empowered to continue the action against all types of encroachment,” adds Mr Ravat.




5 years ago

Good job.

Citizens drive is immensely helpful to keep municipals on their feet. Most of Mumbai is a slum.

Dinesh B

5 years ago

Very good job done.We have the same problem in Borivali West.(Right from Indraprastha Shopping Centre to Goragandhi Apts.)In Borivali we have hawkers sitting around Railway Station,Police Chowki and even right around BMC Ward Office.There is no place to walk.One has to walk on the Road.


5 years ago

Good work by citizens in support of lawful actions!

IDBI Federal launches 'Termsurance' for senior citizens

The plan, for people aged 50-85 years, does not require customers to go through any medical tests, submit medical reports or answer any health questions and is for whole of life and is entitled for deduction of tax

Mumbai: Private insurer IDBI Federal Life Insurance on Monday launched its maiden online product, IDBI Federal Termsurance Seniors Insurance Plan, targetted at people in age group of 50-85 years, reports PTI.

"There are a sizable number of people who would have missed taking an insurance cover when young. Termsurance Seniors Insurance Plan is designed to secure the next of kin so they are not left dependent on the next generation. This will help parents become self-reliant. With Termsurance Seniors, it will never be too late to get covered," IDBI Federal Life Insurance managing director and chief executive GV Nageswara Rao said in a release.

The unique plan, for people aged 50-85 years, does not require customers to go through any medical tests, submit medical reports or answer any health questions and is for whole of life and is entitled for deduction of tax.

The premium payment term is till the age of 90 years and the plan is designed to keep the premium same from the start, while the cover will continue for the whole of life of the insured person.

Under the Plan, in case of death of the insured person after two years of commencement of policy, sum insured will be paid to the beneficiary, provided regular payment of premiums have been made.

In case of death of the insured person is within 2 years from the commencement of the policy, the nominee will get 125% of the total premiums paid.

"The unique feature of no medicals in Termsurance Seniors has helped us design a simple and easy three-step online purchase process. Customers have to just calculate the premium, enter nominee details and make the payment to secure a policy," IDBI Federal Life Insurance Head, Marketing and Product Management, Aneesh Khanna said.

IDBI Federal Life Insurance is a joint-venture of IDBI Bank, Federal Bank and Ageas, a multinational insurance giant based out of Europe.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)