As many as nine gas-based power plants will fire up from April this year as the auction to buy 7.2 MMSCMD of expensive R-LNG (regasified LNG) gas through reverse e-auction concluded on Wednesday. Under reverse bidding, the companies which seek the lowest support from Power System Development Fund (PSDF) after considering a tariff of Rs. 5.50 per unit will be allotted imported R-LNG.
The companies will get a subsidy of approximately Rs. 1200 crore under the PSDF from the central government to offset high cost of imported gas bought by the companies for a price ranging between $ 7.2 to $ 7.5 per MMBTU. The gas will be supplied to the companies for a period of six months starting April this year. The supply of 7.2 MMSCMD of gas will result in generation of 6.3 billion units of power in a six month period starting April.
According to updates by MSTC, GVK’s Gautami power will get 0.67 mmscmd and generate 0.57 billion units of power. Lanco Kondapalli Power Ltd. will get a supply of 1.58 MMSCMD and generate 1.4 billion units. 1.76 mmscmd of gas will be supplied to Ratnagiri Gas and power private limited to generate 1.56 billion units. GMR Rajamundhry will get a supply of 1.09 mmscmd and power generated will be 0.98 billion units while GMR Vemagiri power generation will get 0.52 mmscmd and produce 0.49 billion units. Pioneer Gas power limited will be supplied 0.55 mmscmd to power 0.49 billion units. Gama Infraprop will receive 0.35 mmscmd and produce 281 million units of electricity while GVK Industries Ltd. will be supplied 0.32 mmscmd with an estimated production of 280 million units.
A total of 8.9 mmscmd of gas will be imported for SGP (stranded gas projects) while 1.1 mmscmd will be allocated to DGP (Domestic gas based projects). Companies straddled with 31 SGP and 24 DGP are participating in the auction.
The PSDF scheme was initiated by the government last year to help start power generation at power plants with a capacity of 24,000 MW, the government fixed an outlay of Rs. 3500 crore for fiscal 15-16 and Rs. 4000 crore for fiscal 16-17 for the scheme.