Smriti Kak Ramachandran Are unsure of the price at which the power generated would be sold Discoms unsure if they can pass off the cost incurred on purchase of expensive power to the customers Discoms are keen to establish their own power production ventures which will provide cheap power NEW DELHI: Touted as an answer to the Capital's power shortage problem, the 1,500-MW gas-based plant now coming up at Bawana here has failed to whip up interest among Delhi's power distribution companies. The three discoms -- NDPL, BYPL and BRPL -- have shown reluctance to sign power purchase agreements for acquiring power from the plant whose foundation stone was laid by Prime Minister Manmohan Singh this past March. According to sources, the discoms are wary of signing the PPA because they are unsure of the price at which the power generated at the Bawana plant would be sold. "The discoms are not keen to sign the PPA because as of now the price of gas is not clear. They are not sure of the power production costs and whether they can pass off the extra expenditure incurred on purchase of expensive power to the customers,' said one source. Since the agreements with Petronet and GAIL are yet to be finalised and there is no assurance about the supply of gas after the initial three years are over, the discoms have made their concerns apparent. "The gas-based combined cycle project will be supplied gas by Petronet LNG and agreements have to be signed with Bharat Petroleum Corporation, Gas Authority of India Ltd and Indian Oil Corporation for supply of two million standard cubic metres of gas per day for running the plant. These are yet to be finalised. But the main worry is the cost of gas and the cost of power production,' sources said. The discoms have also cited the steps being taken by them to augment the procurement of power for the city. "The NDPL is building its own power plant, which will cater to the demands of its area of operation. It is also assured of another 300 MW of power from a joint venture between Tata Power and Damodar Valley Corporation at Maithon.' "Similarly, BSES too has approached the Municipal Corporation of Delhi with a proposal to set up a 1,400 MW gas-based plant at the Ghazipur landfill site. The power from these sources will be under Rs.3 per unit, whereas the power from Bawana is likely to be much higher. Naturally the discoms will want to buy cheaper power,' sources said. The first 250-MW unit of the Bawana plant is expected to be commissioned by November 2009. As of now, only Haryana and Punjab have shown interest in procuring 10 to 15 per cent of the power generated at the plant. Delhi Chief Secretary Rakesh Mehta is likely to convene a meeting with the stakeholders to resolve the concern in the coming week. "The best bet for Delhi is self-generation. We cannot rely on sources that are far off because there are grid disturbances and other issues that need to be factored in. The price of gas has gone up and we cannot have coal-based plants in the city, so the price of power will be affected too,' said Mr. Mehta, who is also expected to meet the Chairperson of GAIL on Friday to get a sense of the gas pricing.