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| Fuel price hike hits gas-based projects, NERPC to move PM |
| Press Trust of India / Shillong Aug 12, 2010, 19:18 IST |
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A panel of northeastern states today said it will seek Prime Minister Manmohan Singh's intervention for granting subsidies to gas-based power projects hit by increase in prices of natural gas.
"The gas-based power projects have been hit hard in the wake of the rise in prices of natural gas. The running cost has become high. Unless some subsidy is given, it will be difficult to sustain these projects," North East Regional Power Committee (NERPC) chairman and Meghalaya Power Minister A T Mondol said.
A delegation of the NERPC would meet the Prime Minister, Union Power Minister and Petroleum Minister later this month seeking their intervention, he said after the 9th conference of the NERPC which concluded today.
Tripura Power Minister Manik Dey said the Ministry of Petroleum and Natural Gas has enhanced the price of natural gas from Rs 2,122 per 1000 scm to Rs 4,580, including 10 per cent royalty charges to be effective from June.
"With addition of 12 per cent VAT, the revised price comes to Rs 5,153 per 1000 scm. This is going to substantially raise the per unit cost of power generated from the gas thermal project like the ones in Kathalguri (Assam) and RC Nagar (Tripura), apart from the state-owned generating units,” he said.
Dey said the increase in gas price would force a steep rise in per unit cost of power supplied.
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