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GMR Energy secures gas for two power plants

With the current allocation of gas, two plants with total capacity of 1,138 MW can operate over next six months

Mumbai: GMR Energy Ltd, a unit of GMR Infrastructure Ltd, on Thursday said its two power plants have secured gas, which will help the company increase power generation.

The two plants—GMR Vemagiri Power Generation Ltd and GMR Rajahmundry Energy Ltd in Andhra Pradesh have been allocated gas through a fresh round of e-bidding conducted by the government on 15 September, GMR Infrastructure said.

This was the second round of bidding under the “scheme for utilization of stranded gas-based power plants", launched by the government in March.

“These two plants, with total capacity of 1138 MW, now can operate over the next six months starting October, 2015 at equivalent to 50% Plant Load Factor (PLF) - up from 25% PLF in the previous round," GMR Energy said in a statement.

A GMR Energy spokesperson said: “We are happy to receive gas, which will help rationalize the power tariff and improve the power supply scenario of the state."

With the current allocation of gas, operations will continue till March 2016 and thereafter, the government will call for a fresh round of bidding.

The scheme envisages government subsidies from the Power System Development Fund (PSDF) through a e-bidding process.

“The government will subsidize power distribution companies to the extent of 1.44 per unit from the PSDF for the power procured from these two plants," GMR Energy said.

GMR Energy has a portfolio of 3000 MW of coal based assets and 1350 MW of gas-based assets. Besides this, it also operates 25 MW solar plant and is in the process of developing hydro portfolio of about 2000 MW.

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