India plans to build $5bn power plant in Iran

[ratolz]

NEW DELHI: State-owned power utility NTPC is planning to build a power plant in Iran worth $5 billion, power secretary HS Brahma said here on Tuesday.

The plant will be able to generate at least 5,000 MW of power.

"A smaller power station will not be viable as the power will be transmitted to India across a 1,000-km high-voltage transmission line," Brahma said.

"This is a proposal from the ministry of external affairs. A team from Iran is likely to visit India this year to explore the possibility of investing in India and vice versa," Brahma told reporters on the sidelines of a business meet.

PowerGrid Corp of India will build transmission network, he said.

India plans to build $5bn power plant in Iran - India Business - Business - NEWS - The Times of India

 

[IceCold]

Thats huge, Pakistan and India can work on similar lines but then again who will the weapons manufacturers sell their weapons too.

 

[rubyjackass]

Thats something Pakistan can do better. Import electricity instead of gas from Iran. THis way there cannot be any hassles of environment and transportation.

 

[TaimiKhan]

Well Pakistan will be needing Gas from Iran for 3 main purposes, generating electricity, consumer usage needs & commercial purpose needs.

2ndly i don't understand this article, if India is not investing in a much lower cost wise gas pipeline project, how are they willing to invest in Iran thrice the amount of the gas pipeline project, knowing the transmission line will have to go through Pakistan Or is there another route thought about as the route has not been specified in the article.

 

[praveen]

2ndly i don't understand this article, if India is not investing in a much lower cost wise gas pipeline project, how are they willing to invest in Iran thrice the amount of the gas pipeline project, knowing the transmission line will have to go through Pakistan Or is there another route thought about as the route has not been specified in the article.

You get perks like reduction in tariffs for indian goods or even get even new gas and petroleum blocks to do exploration.It is more a case of loosing a lemon to gain a watermelon

 

[Sam Dhanraj]

2ndly i don't understand this article, if India is not investing in a much lower cost wise gas pipeline project, how are they willing to invest in Iran thrice the amount of the gas pipeline project, knowing the transmission line will have to go through Pakistan Or is there another route thought about as the route has not been specified in the article.

You are right, this particular article did not provided enough details. But if you look at other news articles it may give us some more clue.

While the proposed station may cost upwards of Rs 20,000 crore, depending on its final size and unit configuration, the Centre is considering the option of evacuating a chunk of the power from the project to India, either over land or via an undersea, 1,000/1,500-km high-voltage transmission link, Mr Brahma said.

“We want to finalise the design and site for the proposed project by October and approach the Iran Government with a proposal… We want a site nearest to India,” he said. The cost of an undersea transmission network will be almost three times that of an overhead network, he added.

An NTPC official said the utility had concluded preliminary discussions on the proposal and would take it up further once the issue is firmed up at the government-to-government level.

The Hindu Business Line : India plans gas-based power plant in Iran

"It is proposed that out of the power generated, 5,000 MW may be transmitted to India and balance 1,000 MW may be transmitted to Pakistan," the news report said, quoting unnamed officials.

"We have already worked out two alternatives," the paper quoted Power Grid Chairman S K Chaturvedi as saying.

"One is the 1,500 km land route from Iran via Pakistan to Gujarat which will cost up to 200 billion rupees. And the other route is the 1,000 km sub-sea route, avoiding Pakistan. However, the sub-sea route is uneconomical and will cost almost double," Chaturvedi said.

"It is (building the power project and transmission lines) feasible. Now a call has to be taken by the ministry. This is a preliminary proposal. If the ministry permits, we are prepared to do it (set up transmission lines)," Chaturvedi told Reuters.

India plans 6,000 MW power project in Iran-report | Industries | Industrials, Materials & Utilities | Reuters

There are some discrepancies in figures though, like some article is suggesting 5000 MW while some 6000 MW, at the same time some Reuters reports Project Cost as $10 Billion(which seems incorrect) while others reporting it as 5 Billion.

 

[ratolz]

I think here USA cant object as India will not pay direct cash to Iran, instead India is investing. Also Iran can be provided with electricity rather paying in cash for the gas consumption.

 

[dbc]

A cheaper and greener alternative for India is to use Coalbed Methane, I wonder why no one has considered this option especially mind boggling when you think that India has the 5th largest proven recoverable CBM reserves in the world.
The cost of Iranian fuel and building the infrastructure will be passed to the Indian consumer – I wonder if they can afford it?
I see greater benefit for energy starved Pakistan if this thing pan out since proximity to Iran will make the power generated cheaper for Pakistan.

 

[TaimiKhan]

Well USA will definitely object whether it be invested or not. If even it is investment, the ultimate usefulness will go to Iran, jobs, if its cheap electricity industries will grow & Iran will be exporting things, it would be an alternative to cash may be, but end result would be the same, and definitely some electricity will be bought by Iran for its uses, and when the electricity generation is in Iran with Iranian resources then definitely they will get cash for it, royalty kind of thing.

Indian rejected the IPI gas project due to American pressure & security concerns with Pakistan, so i don't think it to materialize till the security matters between the two countries get better & American pressure will again be there till Iranian nuclear issue is not solved. Americans don't want anything which helps Iran money wise & economically.

Yups sea route is one way to go but will be very very tough one.

Let time come, then we see what it materializes into as its just the start, IPI also went way ahead in planning before it was scraped.

By the way Pakistan is already importing electricity from Iran to some border areas with Iran & last year a 1,100 MW deal had been signed for importing of electricity, which i guess had to materialize this year or the next.

 

[Sam Dhanraj]

A cheaper and greener alternative for India is to use Coalbed Methane, I wonder why no one has considered this option especially mind boggling when you think that India has the 5th largest proven recoverable CBM reserves in the world.

I would not say that the CBM based power generation option has not been considered at all but I would agree that India started late on CBM. Infact Essar, Reliance and others have already started the project

As you can see some info here
Essar to spend $350 mln on coal bed methane

 

[ratolz]

Well USA will definitely object whether it be invested or not. If even it is investment, the ultimate usefulness will go to Iran, jobs, if its cheap electricity industries will grow & Iran will be exporting things, it would be an alternative to cash may be, but end result would be the same, and definitely some electricity will be bought by Iran for its uses, and when the electricity generation is in Iran with Iranian resources then definitely they will get cash for it, royalty kind of thing.

Indian rejected the IPI gas project due to American pressure & security concerns with Pakistan, so i don't think it to materialize till the security matters between the two countries get better & American pressure will again be there till Iranian nuclear issue is not solved. Americans don't want anything which helps Iran money wise & economically.

Yups sea route is one way to go but will be very very tough one.

Let time come, then we see what it materializes into as its just the start, IPI also went way ahead in planning before it was scraped.

America's reaction would be out soon as the news is open now. But as india already know this problem and still GOI asked to study the
feasibility of the project, it means India is serious about this project. But still lets wait and watch.


But one thing i don't understand, why don't India use Pak grid system by delivering the electricity to Pakistan on Iran-Pak border and takes it on India-Pak border. It would save the cost of setting up so long transmission lines and still there would be problem regarding the security of these lines. Instead India can pay some money to Pak for using the lines.

 

[TaimiKhan]

America's reaction would be out soon as the news is open now. But as india already know this problem and still GOI asked to study the
feasibility of the project, it means India is serious about this project. But still lets wait and watch.


But one thing i don't understand, why don't India use Pak grid system by delivering the electricity to Pakistan on Iran-Pak border and takes it on India-Pak border. It would save the cost of setting up so long transmission lines and still there would be problem regarding the security of these lines. Instead India can pay some money to Pak for using the lines.

Simple reason, Every countries grid station system has its own designs, all follow same concepts but sometimes designs & flow mechanism is different. If something happens in our grid system, tripping or any natural disaster knocks out some part of the system and that system is also transporting electricity to india, the Indian electricity will also go down. So a straight line will insure smooth flow of electricity until something uncontrollable happens & the power of electricity will be normal, mixing with our grid station will decrease the actual power needed & line losses will increase resulting expensive electricity & wastage also.

The IPI also went to the end where signing was just left but India withdrew, it may change but i doubt it that Americans will keep quiet.

 

[Gin ka Pakistan]

All Pakistan need is a big hook and put it on the power line and free electricity for life

 

[hembo]

A cheaper and greener alternative for India is to use Coalbed Methane, I wonder why no one has considered this option especially mind boggling when you think that India has the 5th largest proven recoverable CBM reserves in the world.
The cost of Iranian fuel and building the infrastructure will be passed to the Indian consumer – I wonder if they can afford it?
I see greater benefit for energy starved Pakistan if this thing pans out since proximity to Iran will make the power generated cheaper for Pakistan.

May be its for the same reason why USA is not exploring its Alaska oilfields!! Saving it for a rainy day.

 

[ratolz]

All Pakistan need is a big hook and put it on the power line and free electricity for life

You got 270 posts under your belt, But it seems you are still a kid.
GROW UP CHILD.