To ensure generation of at least 50 per cent of its power demand from indigenous projects, the Delhi Cabinet on Monday approved the setting up of a gas-based 750 MW Pragati Power-II project at Bamnauli in West Delhi.

Chief Minister Sheila Dikshit later announced that as the demand for power is expected to increase by 8 per cent to 10 per cent per annum, the State Government wants to ensure that at least 50 per cent of the Capital's total demand is met by projects set up within its geographical boundaries.

“The Delhi Government took the initiative to start its generation within the Capital city after a gap of more than a decade. It has been successful in initiating three major projects in the past three years – PPP-III at Bawana (1,500 MW), Aravali Power Project at Jhajjar (750 MW) and NTPC projects at Dadri (980 MW),'' she said.

Stating that Pragati Power Corporation, which would be implementing the new power project, is a generation company of the Delhi Government, the Chief Minister said the plant at Bamnauli would be fully commissioned within a period of 28 months from the date of issue of letter of award.

Ms. Dikshit said the State Government had already obtained the clearances from the Union Environment and Forest Ministry, the Airports Authority of India and the Defence Ministry.

The Delhi Government has also released a payment of Rs.109 crore for 14.5 hectares that has been earmarked for the project and the possession of the project land has also been obtained.

For the project, 3.5 million metric standard cubic metres per day of gas will be provided by the Gas Authority of India Limited from the Reliance Industry Limited's offshore blocks in the Krishna-Godavari Basin.

The availability of water for the project has also been lined up. The Delhi Jal Board has confirmed the supply of 2,500 cubic metres of water per hour for the project from its sewage treatment plant at Dwarka.

The power generated from the new Bamnauli plant would be evacuated by Delhi Transco Limited through the existing 400/220 kV Bamnauli sub-station.

Ms. Dikshit expressed confidence that work on the new plant will commence soon. She said the National Thermal Power Corporation has been appointed the project management consultant for it and the terms and conditions would be similar to those for the Bawana power project.

More In: Delhi | Business