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Petronet LNG, Pragati Power Corp sign MoU

New Delhi October 27, 2006

An MoU was signed on 27th October, 2006, between Petronet LNG Ltd. and Pragati Power Corporation Ltd. for supply of 7.3 Million Metric Standard Cubic Meter per Day Gas for gas-based power projects of Delhi to meet the demand of power in Delhi, especially during the Commonwealth Games 2010.

The Government of Delhi has plans to set up gas-based projects in Delhi as coal-based power stations cannot be set up in the Capital city for environmental and other reasons. The MoU was signed in the presence of the Delhi Chief Minister, Sheila Dikshit, the Union Petroleum & Natural Gas Minister, Murli Deora, the Delhi Power Minister, Haroon Yusuf, and other top officers of the Union and Delhi Governments at a simple function organised at the Delhi Secretariat.

On the request of the Government of Delhi, the Ministry of Petroleum and Natural Gas, Govt. of India, has consented to give 10 MMSCMD gas to Delhi, which can augment generation by about 2000 MW. The MoU has been signed with Petronet LNG Ltd for the supply of 7.3 MMSCMD Gas for Future Power Projects of Delhi.

The Delhi Government had plans to install gas-based power projects in Delhi but due to the uncertainty regarding availability of Gas, the proposals could not materialize. However, with the signing of this MoU, the same will become as reality as the 350 MW Pragati-II Power Project and the 1000 MW Bawana Power Project are scheduled to be made operational before the Commonwealth Games.

The setting up of these gas-based plants will enable Delhi to enhance core generation from 700 MW to 2000 MW. This will ensure that Delhi is insulated from grid shocks on account of high level of dependence on the Northern Grid. Not only will the supply of power improve, it will also provide stability to the system and there would be surplus power in Delhi from the year 2010-11.

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