9 stranded plants win bid to buy gas

Nine stranded gas-fired power plants have emerged as successful bidders for Rs 187.14 crore subsidy to get natural gas supplies of 9.93 million standard cubic metres per day (mscmd), the power ministry announced late on Saturday.

"The auction process successfully concluded on September 3, 2016 wherein the nine plants emerged as preferred bidders and were allocated mscmd e-bid RLNG (re-liquefied natural gas)," a statement said.

The plants include that of the Ratnagiri power project at Dabhol in Maharashtra, and of the firms GMR, GVK and Lanco, for running a total 5,070 MW capacity, a ministry source said.

"These plants would generate 8.81 billion units of electricity which will be supplied at or below Rs 4.70 per unit to the purchaser discoms (distribution companies) during the period from 1st October 2016 to 31st March 2017," the statement said.

"This will involve government support of Rs 187.14 crore from the Power System Development Fund," it added.

The statement also said the latest reverse e-auction for the stranded gas-based plants is the fourth phase of auctions conducted under the Scheme for Utilisation of Stranded Gas Based Generation Capacity.

India's grid connected gas based power generation capacity is 24,150 MW.

According to the ministry, 29 plants comprising 14,305 MW capacity had no supply of domestic gas and were eligible to participate in the latest auction process.

"Fourteen plants with a cumulative installed capacity of 7,575 MW participated in the auction process for Phase IV," it said.

The successful bidders include power plants in Southern region, it added.

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.

--IANS

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