NDPL CEO Sunil Wadhwa told Newsline, “We are looking at mid-2010 to begin operations at the Rithala plant. We have already shipped purchased turbines and boilers to Dubai, Thailand and Ahmedabad, where they will be upgraded to ensure that the plant doesn’t need maintenance for the next 15 years. We have also finalised the procurement of gas for the plant.”

The discom has arranged to procure one-third of its gas supply from the Gas Authority of India Limited (GAIL), which will supply Liquefied Natural Gas imported from Qatar. The rest of the requirement will be procured from Reliance’s Krishna Godavari Basin. Wadhwa said the decision to procure gas from two sources has been taken to ensure that a disruption in gas supply does not lead to a complete shutdown of power generation at the plant.

The foundation stone for the plant was laid by Chief Minister Sheila Dikshit in March 2008, when it was announced that the plant would be commissioned by June 2009. While Wadhwa declined to explain reasons for the considerable delay, sources in NDPL said it took longer than expected to avail environmental clearances. “The process had to start from scratch when the Delhi state environment assessment council was set up,” an NDPL official said.

The plant is being set up at a cost of Rs 250 crore.

Wadhwa said the power generated at the plant is expected to be cheaper. “This summer, we paid almost Rs 10 to 11 per unit for power procured. We expect the power from this plant to cost around Rs 4 per unit. It will also add to Delhi’s capacity to generate power, especially when the Indraprastha plant shuts down.”