The MoU was signed in order to redeem Uttarakhand, from the current problem of power shortage. Thus, noticing the lack of new hydro plant coming in, due to environmental issues; UJVNL intends to set up 300 to 500-MW gas-based power plants at Kashipur and Haridwar.
This would help the state to overcome the problem regarding availability of power in the state. Confirming the requirement, the statement submitted by GAIL said, "As per GAIL's assessment, there is a demand potential of 4.5-5 million standard cubic metres per day of gas in Uttarakhand."
"GAIL and UJVNL propose to set up around a 350 to 500-MW gas-based power plant each at both places to meet the power requirement of the state," the statement added. Further, the availability of natural gas required in both the plants would be met by GAIL.
However, speculation also suggests GAIL to provide liquefied natural gas (LNG) from overseas to supply to these plants.
Further, observing the current scenario in the state, Gail is set to start its set up by executing two pipeline projects -- the 182-km-long, Rs 239 crore Karanpur-Moradabad-Kashipur-Rudrapur pipeline and the 170-km-long, Rs 255 crore Saharanpur-Haridwar-Rishikesh- Dehradun pipeline. These piplelines are to set to transport gas to consumers in the districts of Kashipur, Rudrapur, Roorkee, Haridwar and Dehradun.