Delhi's power problems could go for a toss if Gas Sales Agreement that GAIL (India) Limited has inked with Pragati Power Corporation Limited to supply 2 MMSCMD of R-LNG becomes operational. The peak demand for electricity in Delhi is slated to grow from the current 4100 MW to 5630 MW in 2010 as per the estimation of Central Electricity Authority.

The GSA was signed in New Delhi on Wednesday by Shri B C Tripathi, Director (Marketing), GAIL and Shri Viney Kumar, Director (Technical), PPCL in presence of Smt. Sheila Dikshit, Chief Minister of Delhi.

The gas supply for a 1500 MW Combined Cycle Gas Turbine Power Project to be set up by Pragati Power Corporation Ltd at Bawana will commence from October 2009 and the validity of this agreement will be till the year 2024. The power plant is expected to be fully commissioned by October 2010 to supply power to Delhi before the Common Wealth Games.

Dr U. D.Choubey, CMD GAIL said, "Gas will be sourced from Petronet LNG [Get Quote] Limited and GAIL will be transporting it to PPCL for which a MoU has already been signed with BPCL [Get Quote] and IOCL. Further, to bring gas from Dadri to Bawana, pipeline with two compressors will be laid. A loop line will also be laid in the GREP pipeline system of GAIL. It will involve Rs. 5000 crore investment and this network will supply gas to other costumers also. GAIL is confident to lay this pipeline synchronising with the power plant" he added.

The re-gassified LNG shall be supplied to PPCL Bawana and the price of delivered gas will be in line with Pooled Price Policy directive issued by Ministry of Petroleum and Natural gas.