5 partly stranded gas-based power plants win on auction day 2

The government on Wednesday announced the revival of five partly stranded gas-based power plants with an installed capacity of 3,455.64 MW that successfully bid through the reverse e-auction process.

"These plants would generate 1.43 billion units of electricity which will be supplied at or below Rs.3.39 per unit to the purchaser discoms (distribution companies) during the period from October 1, 2015 to March 31, 2016. This will involve government support of Rs.278.38 crore from the Power System Development Fund," the power ministry said in a statement here.

In the auction held on Wednesday, 11 plants with a cumulative installed capacity of 5,858.67 MW participated in the technical bid round and all were declared as qualified, the statement added.

Wednesday's auction for partly stranded gas-based plants, together with that held on Tuesday for fully stranded plants have resulted in revival of a cumulative gas-based generation capacity of 11,717.72 MW resulting in generation of additional 12.47 billion units of electricity during the period from October 1, 2015 to March 31, 2016, the ministry said.

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

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

Of the total grid connected gas-based power generation capacity 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.

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

The successful bidders include power plants in the 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.