Government taking various steps to promote Gas based Power Generation

Ministry of Petroleum & Natural Gas stated in a latest update that Gas-based plants in the country are operating at very low Plant Load Factor (PLF). To enhance the availability of natural gas for power generation, Government have placed Liquefied Natural Gas (LNG) under the Open General License (OGL) category, thereby allowing power plants to import LNG as per their requirements on mutually agreed commercial terms with suppliers. The gas imported by power plants during 2024-25 (Apr-Jan), is about 9.58 MMSCMD. Government from time to time have brought out schemes for competitive procurement of power from gas-based power plants during peak demand periods.Various steps taken by the Government for increasing the share of natural gas in the energy basket, inter-alia, include expansion of National Gas Grid Pipeline, expansion of City Gas Distribution (CGD) network, setting up of Liquefied Natural Gas (LNG) Terminals, allocation of domestic gas to Compressed Natural Gas (Transport) / Piped Natural Gas (Domestic) CNG(T)/PNG(D) on priority, allowing marketing and pricing freedom with a ceiling price to gas produced from high pressure/high temperature areas, deep water & ultra-deep water and from coal seams, Sustainable Alternative Towards Affordable Transportation (SATAT) initiative to promote Bio-CNG, etc.

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