13 stranded gas-based power plants win on auction day 1

Thirteen stranded gas-based power plants with an installed capacity of 8,262.08 MW emerged as successful bidders in an e-auction here, getting a government subsidy of Rs.1,590 crore for buying imported LNG, an official statement said late on Tuesday.

"The government is delighted to announce the revival of 13 stranded gas-based power generation plants with an installed capacity of 8,262.08 MW who have successfully bid through a transparent and competitive e-auction process," said the power ministry statement.

"This will involve government support of Rs 1,590.09 crore from the Power System Development Fund (PSDF)," it added.

This auction of stranded gas-based plants is the second phase of auctions conducted under scheme of utilisation of stranded gas-based generation capacity.

"Compared to first phase, the second phase has offered increased gas to more number of plants at a higher PLF (plant load factor)," the statement said.

Of the total grid connected gas-based power generation capacity in the country of 24,150 MW, a capacity of 14,305 MW had no supply of domestic gas. These comprise 29 plants which were eligible to participate in the auction, the ministry said.

"For 13.5 million standard cubic feet per day (MMSCMD) of imported re-gasified liquefied natural gas (RLNG) available, 16 plants with a cumulative installed capacity of 8,974 MW participated in the bidding," it said.

The successful bidders include power plants in southern region.

"The generation from these plants would improve the power availability in the southern grid, mitigating to a large extent the shortage of availability and constraint of evacuating the power to the southern region from other regions," the statement said.

The auction for plants receiving Domestic Gas (DGP) will be held on Wednesday and "11 bids have been technically qualified for it", it added.