This was disclosed by Union Energy Minister R Kumarmangalam at a high-level meeting he had with Chief Minister Keshubhai Patel, his ministerial colleagues and senior officials here this evening. Union Minister of State for Petroleum Santosh Kumar Gangwar was also present.

Kumarmangalam informed the chief minister that the central proposal to set up either a coal or liquid fuel-based 5,000 MW unit in Gujarat would be cleared in two months. Besides, the centre will seriously consider the proposal for a 5,000 MW power unit in Saurashtra.

Responding to a complaint by the chief minister, Kumaramangalam said the centre would give top priority for allocation of additional natural gas from Tapti high for a proposed gas-based power project at Pipavav. ``Our efforts will be to concentrate more on major power projects than smaller ones so as to cut down expenditure on power generation,'' he pointed out. Kumarmangalam said the the state government's proposal that Oil and Natural Gas Commission (ONGC) hand over as many as 33 small gas fields in Gujarat to the government for their development was justified.

Kumaramangalam also assured Patel that he would ask National Thermal Power Corporation (NTPC) authorities to review the tariff structure and accept the payment through a letter of credit and guarantee from the state government for receiving power from the NTPC units. Besides, non-incurred costs will not be added to fuel price by the NTPC, he told Patel.

Kumarmangalam said he would recommend to the petroleum minister that smooth supply of residual fuel oil at reasonable rates be maintained by IOC for the Dhuvaran thermal power station.

The Gas Authority of India will also be directed to maintain adequate supply of gas for the Utran power unit.

He advised the state government to constitute, at the earliest, a power tariff regulatory commission in Gujarat on the lines of the one set up by the centre which will send necessary guidelines for this to the state within a month. The union minister also assured the government that he would convene meeting of union rail and coal ministries to discuss coal supply to Gujarat.