Policy support for land acquisition, development of pipeline infrastructure and free market pricing of gaseous fuel such as Coal Bed Methane will supplement the energy needs of industry, said Prashant Modi, President and Chief Operating Officer, Great Eastern Energy Corporation Ltd.

The company, which has been allocated CBM blocks, operates a commercial facility in Ranigunj, West Bengal. Small and medium enterprises have benefited from substituting liquid fuels with the gas. Over 1,500 vehicles also run on the gas, which is a relatively clean fuel. The resource there is estimated at about 2.4 trillion cubic feet.

Addressing Energy 2013, a one-day conference on power organised by the Federation of Indian Chambers of Commerce and Industry, he said the company is awaiting final clearances for setting up a similar facility in the Mannargudi block in Tamil Nadu where nearly one tcft of CBM is estimated.

A.K. Marchanda, Executive Director – Gas, Indian Oil Corporation, said the industry has welcomed the use of natural gas as it is a relatively cheaper and cleaner fuel. In the last two decades, natural gas demand has grown from about 11 million tonnes oil equivalent to over 49 million tonnes. But it constitutes just about 2 per cent of India’s fuel basket. IOC is rapidly expanding its LNG infrastructure capacity and is in talks with international suppliers.

Tamil Nadu Electricity Minister Natham R. Viswanathan said the power shortage in the State will be addressed by March 2014 and there is ‘no doubt’ about it being power surplus a year later. New thermal power projects being commissioned will add 3,540 MW by the fourth quarter of the current year, he said.

Power Grid Corporation will enhance the transmission capacity to the Southern Grid within the next three months. Tamil Nadu has tied up for over 3,300 MW of power purchase from private players under a 15-year contract. Adequate transmission capacity will be available to it to bring in the power, he said.

balaji.ar@thehindu.co.in

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