GMR, GVK, Lanco to get a slice of Rs 1.2k-cr gas subsidy

GMR, GVK, Gama and Lanco are among those that have fully bought the entire 7.2 mmscmd gas on offer in a reverse e-auction with a subsidy component of about Rs 1,200 crore to buy expensive R-LNG (regassified LNG) for running their stranded power plants.
"The auction for buying expensive 7.2 mmscmd (million metric standard cubic metres per day) gas under the Power System Development Fund (PSDF) for stranded gas-based power projects (SGPs) was held today. The entire quantity was fully secured by different plants," a source said.
"The average price of this gas ranges from USD 7.2-7.5 per mmBtu. The auction for 1.1 mmscmd gas for domestic gas projects (DGPs) getting sub-optimal supply will be held tomorrow."

The auction was conducted by the state-run MSTC and the gas will be supplied for 6 months till September 30, 2016.
According to the MSTC website, the supply of 7.2 mmscmd gas to these power plants will result in generation of 6.3 billion units of power.
The latest update stated that the maximum quantity of 1.76 mmscmd of gas will be supplied to Ratanagiri Gas and Power Private Ltd, or the Dabhol project, which will generate 1.56 billion units of electricity.

Lanco Kondapalli Power Ltd will get a supply of 1.58 mmscmd and generate 1.4 billion units followed by GMR Rajahmundry Energy Ltd with a supply of 1.09 mmscmd and power generation of 0.98 billion units.

According to the MSTC update, GVK Gautami Power will get 0.67 mmscmd and generate 0.59 billion units whereas Pioneer Gas Power Ltd will be marked 0.55 mmscmd to produce 0.49 billion units.
Similarly, GMR Vemagiri Power Generation Ltd will get 0.52 mmscmd and generate 0.47 billion units while for Sravanthi Energy Pvt Ltd, the figures are 0.38 mmscmd and 0.30 billion units in the six months.
Gama Infraprop Private Ltd will take 0.35 mmscmd with an output of 287 million units while GVK Industries Ltd will be supplied 0.32 mmscmd with a production of 281 million units of electricity.
As many 31 SGPs were to participate in the auction, out of which the said nine plants have emerged as successful bidders for the gas subsidy under the auction.

As many as 24 DGPs are expected to participate in the auction for Rs 200 crore gas subsidy for 1.1 mmscmd of R-LNG tomorrow.
This gas subsidy is being provided under PSDF, a scheme which was started by the government last year to revive the gas-based capacity of 24,150 mw, including 14,305 mw of SGPs and 9,845 mw of DGPs.