14 June, 2010

Goa needs power from natural gas
The Goa government’s decision to invite expressions of interest (EoIs) from interested firms for setting up two gas-based power plants of 250 mw each in the state is smart and timely. It comes hot on the heels of an announcement by Ministry of Petroleum and Natural Gas (MoPNG) Secretary S. Sundareshan in Panjim that the 100-km gas pipeline between Gokak in Karnataka and Goa would be ready by mid-2012. It is a branch extension of the Gas Authority of India Limited (GAIL) trunk pipeline from Dabhol in Maharashtra to Bangalore, and is expected to supply gas to firms in Goa like fertiliser maker Zuari Industries (ZIL), the Reliance Power Plant, Binani Glass and others. These firms have agreed to contribute towards the cost of the facility, which GAIL has estimated will cost Rs400 crore.
Sundareshan said that the government had estimated Goa’s industrial requirement of gas at four million cubic metres a day. However, if two power plants do come up, this could increase substantially, and the government must be quick to ensure that gas supply will be assured to the builders of the plants. Since GAIL will be charging companies for delivering the gas at their doorstep through the pipeline, the more units that utilise the gas, the less it will cost each of them.
The only electricity Goa presently produces is from the 40MW Reliance Power Plant at Sancoale. All our power comes from the neighbouring states, based on the quota allotted to the state from different thermal power plants. Apart from the fact that Goa has to concede a 6 per cent wheeling charge to the states it passes through, there is little control over the supply. While the power we get from other states is low-cost as it comes from old coal-fired plants, it is important for the state to generate its own electricity. If Goa becomes a power-surplus state, it would attract far more industries than it does at present. Power we cannot use finds ready customers in neighbouring states at attractive prices.
In setting up power plants, Goa has few choices. Coal-based power generation can be highly polluting, with fly ash, acid rain from oxides of nitrogen and sulphur, and smog. Nuclear power would find a lot of opposition. Besides, why should India buy nuclear power plants from the US, when that country hasn’t set up any of them on its soil for the past two-and-a-half decades? For Goa, natural gas is the best choice. It does produce some greenhouse gases, but it produces much less by way of oxides of nitrogen and sulphur, and almost no dust or ash.
Let us hope that the government expedites the process of processing the bids and awards the contracts as soon as possible, so that the power plants can be built and ready by the time the gas comes to Goa.
To good governance
In case you did not know, Leader of the Opposition Manohar Parrikar heads the Bharatiya Janata Party’s (BJP’s) good governance cell. What is more, the BJP recently held a two-day convention on good governance near Mumbai on 5 and 6 June. Based on the twin themes of su-raj (good rule) and sushashan (good governance), the meet resolved to project the Congress as the party that brings vinash (destruction) while the BJP brings vikas (development). The cells plans to launch a three-year structured training programme for the party cadres.
Unfortunately, the BJP’s top leaders done seem quite as keen on good governance as its chief ministers. While the latter were mostly present, L K Advani, who was to deliver the valedictory address on the second day, failed to turn up. Leader of the Opposition in the Rajya Sabha Arun Jaitley could not make it because of the death of his brother-in-law. Former finance minister Yashwant Sinha, who was to present the charter on good governance, went to Kulu instead. Former BJP President Rajnath Singh skipped the meet even though he was in Mumbai.
 

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