THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SEC. 1]

MINISTRY OF POWER

RESOLUTION

New Delhi, the 19th January, 2001

Liquid Fuel Based Power Plants

F. No. FU-32y97-IPC.I(VoL VI).—In pursuance of the private power policy launched by the Government of

India in October, 1991 and with a view to ensuring a quick capacity addition, the Government had announced vide

Resolution No. A-27/94-IPC (Vol. II) dated 6-11-1995, the decision to permit private sector units to set up dicsel engine

generating (DG) units of reciprocating type and using heavy fuel oils such as Heavy Petroleum Stock (HPS), Low Sulphur

Heavy Stock (LSHS), Heavy Furnace Oil (HFO) and Natural Gas, wherever available, as primary fuel. Subsequently,

vide Resolution No. C-355/95-IPC I dated 14th May, 1996 and No, FU-32/97-IPC. I dated 15th October, 1998, the use of

some other fuels namely, petroleum coke, vacuum residue, condensate and orimulsion, as primary fuel for power genera-

tion was also permitted. The use of High Speed Diesel (HSD) was not permitted except in special cases fulfilling the

criteria mentioned in clause 1.1 (ii) of the resolution dated 15-10-1998.

2. Government has reviewed the policy on use of other liquid fuels for power generation and accordingly, it has

been decided that indigenously produced High Speed Dicsel (HSD) will be allowed as fuel for power generation. The

power producers using HSD for power generation could source their requirement of HSD from the oil company(ies)

authorised to market HSD, at mutually agreed terms and conditions, at a price outside the oil pool mechanism. Commer-

cial agreement entered into between the oil company supplying HSD and power producer would be registered with Oil

Coordination Committee (OCC) as long as Administered Price Mechanism regime continues. A power project using HSD

may be required to submit periodical statements indicating HSD purchased, consumed, power generated etc. to the Oil

Coordination Committee. Import of HSD for this purpose will be considered on a case by case basis only if there is a

shortfall in the availability of domestic HSD.

3. It has also been decided to permit ihe use of domestic distillate oil 2 and domestic light diesel oil (LDO) for

power generation on the same lines as domestic HSD.

A.K. BASU, Secy.

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