Telangana to get 300 MW power from Lanco from March 1

Hyderabad, Feb 25, 2015: Stage is set for Telangana to receive 300 MW of power from gas-based Lanco power project at Vijayawada from March 1. According to news story published in a national news daily, Telangana government has come to an understanding with Lanco Power management over purchase of power from the latter. Swapping of gas quantities would be made resulting in the Gas Authority of India Limited supplying gas to the Lanco power unit at Kondapally from its KG Basin wells. The power station will go into production from March 1, 2015. This power station has been idle for the last two years. In return, the Lanco power station will supply 300 MW of power to Telangana at the rate of Rs.7 to 8 per unit. For supplying gas to Kondapally power unit on behalf of Telangana, GAIL will get gas supplies delivered at Gujarat ports by the Telangana Government. These supplies will be delivered to fertilizer units in Gujarat. The swapping agreement was made possible under a rule of the gas pooling system according to which states can import gas from abroad and deliver it to GAIL for supplying the same to fertilizer companies. In lieu of that , states can draw gas from the KG Basin. According to the agreement, GAIL will deliver 1.2 MMSCD (Million metric sq cubic meters of gas per day ) to Lanco power unit while Telangan Government will ensure supply of same quantity of gas at Gujarat ports.