NTPC likely to shut units due to fuel shortage

State-run National Thermal Power Corporation's (NTPC) several units at its seven gas-based power plants are likely to be shutdown today, due to fuel shortage in the wake of the ongoing strike in the oil sector.

"Two units of Auraiya power plant, one at Faridabad and another at Dadri are likely to be closed down today due to unavailability of gas," official sources said.

NTPC has seven dual-fuel power stations (both gas and naphtha), at Anta, Auraiya, Dadri, Faridabad, Kawas, Gandhar and Kayamkulam, having an installed capacity of 3,955 Mw.

"The NTPC is left with only 2-3 days' stock of naphtha. If the strike continues it would run out of fuel. Therefore, as of now plants should run on partial load to ensure generation for a longer duration," the sources said.

The estimated gas requirement to operate the plants at 90 per cent plant load factor is around 17.35 mmscmd. The NTPC has a long-term agreements with the Gas Authority of India (GAIL) for 12.93 mmscmd of gas under the administered price mechanism category for these gas stations.

NTPC is the country's largest power producer. The current electricity generation capacity of the company is around 30,000 Mw, which accounts for 19.12 per cent of India's installed capacity.

Abolition of import duty on naphtha, in the first stimulus package announced in December last year, came as a breather for the power projects running on the dual fuel.

Naptha is manufactured from crude oil and is widely used in the power sector, fertiliser plants and petro chemical industry as a feedstock.