Sunday, March 30, 2008

Why Only Belgaum should suffer

The below news post shows the possiblity of Belgaum's potential for its strategic location, unfortunately governments interest and lcal politicians will power never came togather for making anything good happen here , I pity this system and "Koi fark nahi padta kind of attitude".
Its a lesson that neither Karnataka nor Maharashtra have any interest in Belgaum its we the people (Belgaumites Kannada-marathi-Urduand everyone)need to make the differnce , just imagine if this project get executed what can be the benefits.
We would have elctrified rail network in North Karnataka , with Local serivce between Belgaum Hubli-Dharwad and Bagalkot.
We would never need to stand in long queues for gas refills.
We would have enough power to galvanize industrial growth in the region,but it all end with only "We Would have", where as Why not "We Must have" otherwise. Think.....!!!!!!!

New Delhi, June 27
As the Dabhol LNG terminal cum 2184 MW power project nears resolution, the smell of well-priced gas is drawing consumers. Karnataka is now seeking to shift its failed 1400 mw Bidadi project to Belgaum, closer to the terminal, if it can secure gas supplies from the Dabhol terminal.In a recent letter to Union power secretary Mr RV Shahi, the Karnataka chief secretary Mr Mishra has sought supply of 6 mmscmd gas from the Dabhol regassification terminal. Talks will be initiated with Gail in this regard, Mr Mishra said in his letter.The desire to procure Dabhol gas is founded in its competitive terms. Gail, one of the two promoters in the Dabhol project, expects to procure gas at under $4.2 per mmbtu, which translates into a fuel cost of around Rs 1.40 per unit. Adding another 90 paise unit towards fixed costs — costs incurred towards servicing debt and equity required to fund the power plant — the tariff will be Rs 2.40 per unit, which makes it price competitive.This arithmetic is the basis for revival of the Dabhol plant, and Karnataka is hoping to emulate it by setting up a plant at Belgaum and source gas from the spare LNG capacity at Dabhol. The Dabhol 2184 MW power project will utilise only 2.2 milion tonnes of the 5 million tonnes re-gassification terminal capacity, that is over 90% complete.The proposed Belgaum project represents a large capacity consumer who is potentially credible, considering that the state is pegged high on the reform score card. However, it might not be in line with Gail’s own priorities as the public secto gas major seeks to develop a gas grid and undertake retail sales.The proposal to set up a project at Belgaum is Karnataka’s third attempt to secure gas and set up a power project. Way back in 2002, Unocal exited the project promoted by the state-owned Karnataka Power Corporation Ltd.Following that, KCPL decided to go it alone, promoting the Bidadi project as an inter-state mega project with the explicit intention of entering into a power purchase agreement with a power trader, Power Trading Corporation Ltd. The bid to solicit fuel supply failed early this year, when none of the qualifying Companies submitted price proposals. These included Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation and Reliance.

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