Chief Minister N. Kiran Kumar Reddy has stepped up pressure on Union Minister for Petroleum and Natural Gas S. Jaipal Reddy for allocation of gas to two important power projects in Telangana with a combined capacity of 3,100 MW.

Mr. Kiran Kumar Reddy had written to Mr. Jaipal Reddy in July this year that APGENCO could not start construction on its two gas-based power projects – the 2,100 MW project at Nedunur in Karimnagar district and another 1,000 MW power project at Shankarapalli in Ranga Reddy district -- for want of gas allocation.

Important for region

As the two projects were important for the Telangana region both for agriculture and industry, the Chief Minister impressed upon the Petroleum Minister to clear the allocation. Despite repeated requests, no gas allocation was made to the two projects, he said.

Being an MP from the region, it would only be in the fitness of things for Mr.Jaipal Reddy to take a keen interest in gas allocation to the two projects, Mr.Kiran Kumar Reddy said. He had also taken up the issue with the Prime Minister and other Union Ministers recently.

The State had requested allocation of 9.72 MMSCMD gas to Nedunur project and 4.62 MMSCMD gas to the Shankarapalli power project on priority basis. The government, meanwhile, had completed all required formalities, including land acquisition, water allocation from Maneru dam for the Nedunur project and other development activities based on the assurance given by RIL.

Major project

Nedunur is the first gas-based power project by APGENCO and is also a major project in Telangana area. For the Shankarapalli project too, all development activities, including land acquisition, were completed so as to start construction once the gas allocation was made, he said.

In view of the growing demand for power in and around Hyderabad, particularly to meet the requirements of the Metro Rail project, the Shankarapalli project is crucial.