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GAIL announced on Thursday that it has signed a Memorandum of Understanding (MoU) with Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) to explore the transfer of RRVUNL’s two gas-based power plants to a new joint venture company (JVC). This move aims to optimize the operations of these plants and ensure a more efficient power supply.
The significance of this development comes in the context of a government mandate highlighting the importance of gas-based power generation for maintaining uninterrupted power supply during peak demand periods, such as the 250 gigawatts (GW) recorded in May 2024.
Under the MoU, GAIL and RRVUNL will investigate the feasibility of transferring RRVUNL’s gas-based power plants located in Dholpur and Ramgarh to the proposed JVC. Additionally, the partners will collaborate on establishing around 1,000 megawatts (MW) of solar and wind projects on suitable land parcels, aiming to provide round-the-clock (RTC) power.
This partnership marks GAIL’s second foray into operating gas-based power plants. In May 2022, GAIL acquired a 26% equity stake in ONGC Tripura Power Company (OTPC), which operates a 726.6 MW gas-based combined cycle power plant in Palatana, Tripura.
GAIL will conduct detailed due diligence and feasibility studies for each project to assess their techno-commercial viability before forming the JVC.
The company already supplies gas through its 1,090 km pipeline network to various industrial customers in Rajasthan, including Chambal Fertilizers and Shriram Fertilizers. It also provides gas to 19 Authorized City Gas Distribution entities in several districts of Rajasthan for residential, commercial, and industrial use, promoting green and clean energy.
GAIL’s Jamnagar-Loni LPG pipeline, spanning 1,427 km, includes a significant segment operational in Rajasthan. The company also supports the Jal Jeevan Mission (JJM) in the state by supplying polymers for HDPE pipes to enhance rural water supply.
In Q1 FY25, gas-based plants achieved a capacity utilization of 25.8%, generating 13,338.23 million units (MU), marking the second-highest output after Q1 FY21. This increase in production has elevated the share of gas in India’s power generation mix from 2% in June 2023 to 2.8% in June 2024, as reported by Crisil Market Intelligence & Analytics. |
