Fortunes of gas-based power projects seem to be in for a tough time, as production from the KG-D6 basin falling. Contracts for power plants also froze, according to reports.

It was in July 2010 Alstom Projects won a Euro 450-million (Rs 3,130-crore) order from GVK for their 800-Mw gas-based Jegurupadu-III power project in Andhra’s East Godavari district.

The first unit under the engineering, procurement and construction contract was supposed to be booked in the third quarter of the current financial year and the rest after relevant government clearances.

In the meantime, fortunes of gas-based power projects took a beating, with production from the KG-D6 basin falling. Contracts for power plants also froze. “We have not yet cancelled the contract, but have kept the order alive. It will be executed whenever the project gets off ground,” said a GVK executive.

Sravanthi Energy’s contract with GE Energy for gas turbines for their 450-Mw plant at Kushinagar (in east UP, 53 km west of Gorakhpur) faces a similar fate, reports added.

GE said the order had not been cancelled but gave no information on the status, saying they were bound by client confidentiality. Sravanthi, which had claimed it would commission its first unit by the third quarter, did not respond to queries.

Related posts:

1. Environment Ministry to decide fate of 21 projects of capacity 32,100 MW
2. AP’s gas based power projects in trouble
3. Gas Based Power Projects – Current Scenario
4. Gas Based Power Plants – A Status
5. AP Gets Rs.9500 Crore for Two Power Projects
6. List of New Thermal Power Projects Seeking MoEF Clearance July 2010
7. BGR Energy wins Rs 1,698 cr contract
8. CLP India may opt for gas based power plant for Phase II expansion