India Considers Construction of $5.1bn Gas Plant in Iran

25 August 2009 (Last Updated August 25th, 2009 18:30)

India is trying to convince Iran to allow it to build a $5.1bn 5,000MW natural gas-fired power station in Iran, to help it overcome a mass energy shortage, Indian Power Secretary H.S. Brahma said. India, which is currently reeling under a severe power shortage, imports 70% of its oil co

India is trying to convince Iran to allow it to build a $5.1bn 5,000MW natural gas-fired power station in Iran, to help it overcome a mass energy shortage, Indian Power Secretary H.S. Brahma said.

India, which is currently reeling under a severe power shortage, imports 70% of its oil consumed.

The country has considered several alternatives to address the power shortage including setting up of natural gas pipelines from Turkmenistan and Iran via Pakistan – a plan that met opposition due to strained relations between India and Pakistan.

It had also considered a small power plant but this was deemed impracticable due to the high-voltage 1,000km power transmission line that would be required to transport the energy.

Brahma said India's ambassador to Iran is trying to make the proposal a reality.