GAIL pipeline commissioned

By Our Staff Reporter

VIJAYAWADA, AUG. 20. The Gas Authority of India (GAIL) will complete the 600-km Visakhapatnam-Secunderabad gas pipeline in 24 months, Mr J.K. Jain, Chairman and Managing Director, said here today. Mr Jain commissioned the 205-km gas pipeline laid from Tatipaka, East Godavari district, to Lanco-Kondapalli power plant near here today. He also inaugurated the GAIL gas terminal in the Kondapalli Industrial Development Agency.

He said construction of the Visakhapatnam-Secunderabad pipeline had already began. GAIL had set for itself a target to supply gas to the BSES power plant from October 15. About the availability of gas Mr. Jain said GAIL had access to about 5.8 to 5.9 million cubic metres a day. An effort was on to increase it to nine million cubic metres a day.

Mr Jain said the Lanco-Kondapalli pipeline was completed 10 months ahead of schedule with the help of the State Government. He said even farmers were also very cooperative. He said for the first time even the customer, Lanco-Kondapalli power plant, was very helpful. He said the power plant had already made the changes needed for generating power with gas. He lauded the standards being maintained in the power plant.

GAIL laid the pipeline to Kondapalli Industrial Estate at a cost of Rs 300 crores. The laying of the pipeline was done in four packages of 19.5 km(Chinchinada bridge), 45 km, 60 km and 80 km. The pipeline was laid across the Vasista Godavari, a major river, two minor rivers, 17 major canals, 93 minor canals, 100 roads and through the limits of 89 villages.

The pipeline project was conceived in February 2000, and the detailed survey was completed in July 2000. The gas supply contract was signed with Lanco-Kondapalli exactly a year ago on August 21, 2000. Construction began on March 11, it was tested first with water initially on July 22 and finally on August 15. It was `purged' with nitrogen on Sunday and commissioned today. The cost of transporting gas through the pipeline was Rs. 4.88 crores per month.

Mr. Y. Harish Chandra Prasad, Managing Director, Lanco-Kondapalli Power Project, said GAIL allotted 1.12 million cubic metres of gas per day. The capacity of the pipeline was much more than what was required by Lanco. The additional gas could be used by other industries in the industrial estate, he said.

He said generating power with gas would cut production cost by 50 per cent. Lanco was at present generating power with naphtha producing one unit for Rs 4.60. The power plant would be able to reduce the cost of production to Rs 2.30 a unit. This would save the State Government between Rs 150 crores and Rs 200 crores a year. Lanco which had an installed capacity of 355 MW was producing 7.5 million units a day, he said.

Mr Chukkapalli Suresh, Director, Lanco, said that the Chief Minister, Mr N Chandrababu Naidu, was closely monitoring the progress of the pipeline. The GAIL General Manager, Mr D.K. Purwar, the Executive Director, Mr B.S. Negi, the Director, Mr S.P. Rao and the Lanco General Manager, Mr S. Seetaramiah, spoke.

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