That several large power and fertiliser projects are stuck for want of gas/coal linkage is known, but even the ambitious Delhi Mumbai Industrial Corridor (DMIC) has run into a hurdle for the same reason. The DMIC project includes six gas-based power projects of about 12,000 MW capacity along the corridor and their implementation plans are now under threat owing to the uncertainty over gas allocation.
Sources said the Japanese authorities have already taken up the matter with the department of industrial policy and promotion (DIPP). Japan has a 26% stake in the $100-billion DMIC project and two Japanese financial institutions ? JBIC and JICA ? have extended a loan of $4.5 billion to the project.
According to sources, lack of gas is leading to delays in setting up of power plants, which are essential for further construction of the industrial corridor. Out of six plants, two will come up in Maharashtra, two in Gujarat and one each in Madhya Pradesh and Rajasthan.
Confirming Japan?s concern over the delay, an official said: ?The DIPP is in a constant dialogue with the power ministry and the ministry of petroleum and natural gas to find ways to overcome the situation.?
Senior government officials who are involved in the discussion, however, say that given the fact that the country is facing an acute shortage in gas supply, it would be difficult to have sufficient gas allocations for the DMIC power projects before 2014-15.
The production of natural gas in the country stood at 47.56 billion cubic metres (bcm) during 2011-12, which is about 9% lower than the previous year mainly due to lower production from KG-D6 deep water block. The natural gas production in 2012-13 is projected at about 43 bcm.
According to the plan, DMIC will have six power projects which will cater to the industrial development and the townships planned along the corridor.
?Gas allocation is necessary for setting up power plants and until the plants are up, industrial activity and townships cannot start,? the source added.
DIPP had also requested the ministry of petroleum and natural gas to allocate 8 million metric standard cubic metres per day (mmscmd) gas for two of its first two power projects being developed along the DMIC, the source added.
The delay is also leading to slower progress of much-hyped Dholera and other cities which are the first to be developed along the corridor.
