NTPC, 10 others in fray for subsidy on LNG for power plants

NEW DELHI: As many as 11 bidders including NTPC are in the fray on Wednesday for the Rs 298 crore government subsidy on offer for plants receiving inadequate domestic natural gas.

The power plants can use the subsidy support from the government to buy expensive imported LNG to make up for the fuel deficit.

“As many as 11 bidders are in the fray today. Some of the companies which are in the race include NTPC,” a source said. The government is offering a subsidy of Rs 298 crore crore for buying imported LNG for DGP, the source added.

The ceiling price is at Rs 1.97 per unit, according to the auction data.

On Tuesday, 13 stranded gas-based power plants with an installed capacity of 8,262.08MW got government subsidy of Rs 1,590 crore for buying imported LNG, to restart their stranded electricity generating stations.

“The government is delighted to announce the revival of 13 stranded gas-based power generation plants with an installed capacity of 8,262.08MW who have successfully bid through a transparent and competitive e-auction process,” an official statement had said.

However, the names of the successful companies were not disclosed.

As many as 16 power companies, including GMR, GVK and Lanco, were in the fray today to get government subsidy support to buy imported LNG for restarting their stranded electricity generating stations.

The auction started at a base price of Rs 1.45 per unit.

The 13 plants would generate 11.03 billion units of electricity which will be supplied at or below Rs 4.70 per unit to the discoms during the period from October 1 to March 31, 2016.

“This will involve government support of Rs 1,590.09 crore from the Power System Development Fund (PSDF),” it had added.

The present auction of stranded gas-based plants is the second phase of auctions conducted under scheme of utilisation of stranded gas-based generation capacity.

The grid connected gas-based power generation capacity in the country is 24,150MW.

Of this, a capacity of 14,305MW had no supply of domestic gas. These comprise 29 plants which were eligible to participate in the auction held today, it had said.