Govt auctions imported natural gas to revive 5 GW of power capacity
- PNB fraud: ICAI obtains statement from senior bank official
- Andhra Pradesh govt signs 77 MoUs worth Rs31,546 crore at Partnership Summit
- Kia Motors to roll out first car from Anantapur plant by 2019
- Govt revokes passports of Nirav Modi and Mehul Choksi
- Warren Buffett warns investors that safe-looking bonds can be risky
New Delhi: Nine gas-based power plants in south India that were stranded for non-availability of fuel have been given about 10 million standard cubic metres a day (mmscmd) of imported natural gas, the power ministry said after concluding auctions for the gas.
Based on the reverse e-auction, gas is allotted to plants that require least amount of government support from the Power System Development Fund. The idea is to help the most viable among the stranded plants to get operational first. Financial support of Rs.187 crore will go to these plants, the power ministry stated.
The plants with an installed capacity of 5 gigawatt (GW) will generate 8.81 billion units of electricity which will be supplied at or below Rs.4.7 a unit to distribution companies between 1 October 2016 and 31 March 2017. The fourth auction of imported gas meant to revive stranded power projects was concluded on 3 September.
About half of the 14 GW of gas-based capacity that lacked fuel supplies participated in the auction. The country has a total grid-connected gas-based power generation capacity of 24 GW.