Power Ministry plans separate bidding format for gas-based plants

The Power Ministry is looking at separating bidding documents for gas-based power plants, amid increasing scarcity of the fuel.

Accounting for about 37 per cent of overall consumption, power sector is the single largest consumer of gas in the country.

“We are looking at that and are likely to come up with separate bidding documents for gas-based power plants,” Power Secretary P Uma Shankar said here today.

Speaking at the seventh Asia Gas Partnership Summit 2012, he said that about 4,000 MW of gas-based power generation capacity is likely to be commissioned anytime from now.

“About 15 GW (gas-based capacity) is under construction, out of which 4 GW is likely to be commissioned anytime from now… The remaining would be commissioned by the end of the calendar year,” he noted.

Shankar also stressed on the need for increased availability of domestic gas to meet sectoral requirements.

Noting that pricing of gas is important, NTPC Chairman and Managing Director Arup Roy Choudhury said the same should be done in a way that is affordable for the consumers. State-run NTPC is the country’s largest power producer and has nearly 4,000 MW of gas-based generation capacity.

Fertilisers Secretary Ajay Bhattacharya said that gas should be made available for the fertiliser sector at a reasonable price. Gas is the feed stock for majority of the urea production.

“For rise of every $1 increase in gas prices for standard 1.2 million tonne urea plant, the annual extra subsidy outgo on that account is around Rs 120 crore per annum.

“So, for the gas used for urea production, for every $1 increase, there is a increase in subsidy of about Rs 6,000 to Rs 7,000 crore,” he noted.

Source: ET


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