BSES to sign gas supply agreement with GAIL

Vol 5, PW 10 (04 Jul 01) News in Brief

Bombay Suburban Electricity Supply is set to sign a gas supply agreement with GAIL to purchase 1m cm/d gas sourced from the Godavari basin to fuel its 220-MW combined cycle power station at Samalkot near Kakinada in Andhra Pradesh.

"We are waiting for the draft agreement from GAIL," reveals a source. "Once we get it our legal department will vet it and then sign it." In May the oil ministry allocated BSES its full requirement of gas for the project.

The Samalkot power station is to be commissioned on September 30th and is BSES' largest power station outside Mumbai. Electricity generated at Samalkot will be sold to AP Transco at about Rs 2 per kWh.