GMR Energy's two plants to receive gas subsidy

GMR Energy today said that its two gas-based plants will get government subsidy on use of re-gasified liquefied natural gas (RLNG) for four months from June to September.
"GMR Energy's gas based plants, GMR Vemagiri Power Generation Limited (GVPGL) with capacity of 388MW and GMR Rajahmundry Energy Limited (GREL) with capacity of 768MW, have been awarded Letter of Intent for gas allocation for a period of 4 months namely, June-September 2015," the company said in a BSE filing.
According to the statement, these plants emerged as successful bidders through a highly competitive and transparent online reverse auction process organised for the stranded gas power plants earlier this week.

The award will enable both plants run at 25 per cent Load factor for capacities of 370 mw (GVPGL) and 384 MW (GREL). The current award would facilitate commissioning of GREL.
Based on the award, GVPGL & GREL would be entitled to subsidy support of Rs 1.44 per unit over and above the limit of Rs 4.70 per unit payable by power procurers for the power generated with the allotted gas quantity.
As per Power Ministry's scheme, gas supply for stranded plants through this process is planned for 2 years. This auction was for a period of 4 months from June to September this year.

Under the Power System Development Fund, government has planned to provide Rs 7,500 crore to stranded gas based power project over two years period.