(a) whether the Government are aware that National Thermal Power Corporation has
decided against going ahead with its plan to set up a 2000 MW gas-based power project
in Karnataka;
(b) if so, the reasons therefor; and
(c) the steps being taken by the Government to help the Karnataka Government in
this regard?
THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )
(a) & (b) : The feasibility of setting up a 2000 MW gas based power project at
Mangalore in Karnataka has been examined in the Ministry of Power, Government of
India. The recent hike in international crude oil price has a caused steep increase in the
LNG prices as LNG price is generally indexed to crude oil prices. At the current LNG
price, the cost of generation is expected to be over Rs.4 per unit, which will make the
power unaffordable from such power plants.
(c) : National Thermal Power Corporation (NTPC) has been advised to discuss
the rate of LNG which is likely to be obtained over a period of 20-25 years based on the
long term LNG price with the Ministry of Petroleum and Natural Gas and M/.s Petronet
LNG. Thereafter, NTPC would work out the revised tariff and discuss Power Purchase
Agreement with the beneficiary States. Depending on the Techno-economic feasibility of
the project, NTPC will initiate further action.