ONGC will supply gas from its Kammapalem field in Rajahmundry to Andhra Pradesh's largest private steel manufacturer.
"The total gas allocation now stands at 75,000 cubic meters per day. SEIL has facility to generate up to 12 MW of power at its Kothapeta plant," SEIL said in a statement.
Presently SEIL is supplying the unutilised power up to 9 MW to APTRANSCO.
SEIL Managing Director, B Satish Kumar said, "We are very happy and take pride to note ONGC has approved our bid and allocated the gas. We have recently upgraded our gas engines for efficient working and we will be able to reach our full potential of power generation at Kothapeta with this allocation."