State-run gas major GAIL India will supply gas to the 160-MW power plant in Ramgarh, Rajasthan.
The company has signed a gas sales and transmission contract with Rajasthan Rajya Vidyut Utpadan Nigam in this regard, GAIL said in a statement issued Friday.
The agreement was signed in Jaipur Friday in the presence of Rajasthan Chief Minister Ashok Gehlot, Petroleum Secretary R.S. Pandey and GAIL managing director B.C. Tripathi.
According to the deal, the gas major would supply 0.95 million units of gas for a period of 12 years for the Ramgarh plant.
The supply will be sourced from RJ-ON/6 block, where production will begin from mid-April 2010, with the entire offtake ability is expected to be available by April 2011.
The company has also signed a sales and purchase agreement with SGL consortium, the contractors of the RJ/ON-6 onland oil block in Rajasthan