GMR Energy 2 plants in Andhra to get gas subsidy

GMR Energy today said its two gas- based plants in Andhra Pradesh having a capacity of 1,138 MW will get government subsidy on use of re-gasified liquefied natural gas for six months from October to March.
GMR Vemagiri Power Generation Ltd (GVPGL) and GMR Rajahmundry Energy Ltd (GREL) in Andhra Pradesh have been "awarded allocation of gas through a fresh round of e-bidding conducted by the government on September 15, 2015," the company said in a statement.
These two plants now can operate over the next six months starting October, 2015 at equivalent to 50 per cent plant load factor, up from 25 per cent PLF in the previous round, the company said.

The government will subsidise the power distribution firms to the extent of Rs 1.44 per unit from the Power System Development Fund (PSDF) for the power procured from both the plants.
With the current allocation of gas, operations will continue till March 2016 and thereafter the Government will call for a fresh round of bidding.
This was the second round of bidding under the "Scheme for Utilisation of Stranded Gas based power Plants", launched by the government in March.

The scheme envisages government subsidies from the PSDF through a transparent e-bidding process.
The company further said that 768 MW GMR Rajahmundry Energy will commence operation soon.

GMR Energy has a portfolio of 3,000 MW of coal-based plants and 1,350 MW of gas-based assets. Besides, it also operates 25 MW solar plant and is in the process of developing hydro portfolio of about 2,000 MW.
After two days of reverse e-auction, 18 power plants including that of NTPC and Torrent Power had emerged as successful bidders to receive subsidy of about Rs 1,787.47 crore to buy imported gas, a move that will help revive a cumulative generation capacity of 11,717.72 MW.