10 Stranded Gas Based Power Plants Successfully Bid Through Transparent Reverse E-Auction

The Government is delighted to announce the revival of 10 stranded gas based power generation plants who have successfully bid through a most transparent and competitive reverse e-auction process for generating 5.05 billion units of electricity which will be supplied at or below Rs 4.70 per unit to the purchaser Discom during the peak summer months from 1st June 2015 to 30th Sept 2015. This will involve government support of Rs. 723.99 crore from the Power System Development Fund.

The grid connected gas based power generation capacity in the country is 24,150 MW. Of this, a capacity of 14,305 MW had no supply of domestic gas and is completely stranded. These comprise 29 plants of which 9 plants are yet to be commissioned. All these plants were eligible to participate in the auction process held.

In the auction process, 14 plants with a cumulative installed capacity of 8,109 MW participated in the Technical Bid round and all were declared as Technically Qualified. The auction was meant to determine the plants which were seeking lowest per unit support for sale of power to Discoms, while utilizing fully 10 MMSCMD of imported RLNG.

Bidding started at 25% PLF and after 5 rounds reached a level of 35% PLF where the reverse e-auction for per unit PSDF support started. The reverse e-auction for the Stranded Gas based Plants was conducted under the newly approved Scheme for Utilization of Stranded Gas Based Generation Capacity.

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