Samalkot largest gas based capacity at 2400 MW: Chalasani

JP Chalasani, CEO, Reliance Power says that Samalkot is the largest gas based capacity plant with a capacity of 2400 MW. In an interview to CNBC-TV18, he gave details of the plant and expectations from the government on gas allocation.

Here is an edited transcript of his comments. Also watch the accompanying video.

Q: Tell us more about the Samalkot plant.

A: This is the largest gas based capacity being 2400mw power plant and being built in a very compact layout of 111 acres.  It has an investment of Rs 10,000 crore with world class technology. To top it all this plant is being commissioned in a shortest time period of 15 months from the time we signed the contract.

Q: What are your expectations from the government on gas allocation?

A: As far as the gas allocation is concerned on this the CEA has made three visits at different points of time. Even we understand as late as the month based on the progress achieved they were convinced that this entire gas based capacity of 1450 mw can be before March 12, 11th plan period.

They have recommended for 9.6mmscd of gas. So we understand that there is going to be an EGoM shortly and we are sure there will be a positive outcome of that. Then this plant would be up in generating power in the much power starved southern region

Q: Is screening for gas allocation done in Samalkot plant?

A: Gas is going to be allocated for those plants which are ready for commissioning 11th plant project, so that screening has already been done. There are a set of projects which are there for which the gas has been recommended.

So, Samalkot really stands out there as part of those plants which are eligible for gas allocation, if that is not there than anyway you are not there.

Today having built the plant in the shortest period of time, you are there asking for the gas and eligible for the gas.

Therefore once you have a base allocation of gas there could be number of strategies to ensure that the world class asset you've have created in the shortest period of time with Rs 10,000 crore of investment be operational.

Q: What are your expectations from the government?

A: We see this as a scenario where you have been told that go and built your gas based plants, in the 11th plan period the govt is going to support you in the allocation of gas. So, we went and built this plant and there is recommendation of the highest body called CEA and minister of power's recommendation. Therefore I do not see as a scenario where we do not get at all.

Q: So, how do you peg it vis-a-vis Dadri plant?

A: We took a decision in the last quarter of 2010 to built the country's largest capacity at Samalkot because we already have 220 MW operating asset here. We took this strategic decision because this is the place close to Krishna Godavari basin so therefore it is well head station.

So your input cost is much lower here. You have tremendous infra to built the plant in the shortest span of time and you are in the southern region. Strategically for the stakeholders it was right decision to built the plant first at Samalkot, hence it is not right to compare Dadri and Samalkot.