NTPC, Torrent, CLP bag gas subsidy for running power plants

Five power plants, including two of state-run NTPC  and one ofTorrent Power  , today won the government subsidy worth about Rs 278 crore to buy imported LNG to make up for shortfall in domestic supplies.

On the second day of the auction for government support to power stations with inadequate supply of natural gas from domestic fields, Torrent, NTPC and Gujarat Industries Power Co quoted lower tariff than the base rate for generating electricity from imported LNG.

In the reverse bidding, companies were asked to quote variable cost of power using imported LNG.

The auction was conducted on the MSTC platform. Torrent Power Ltd, NTPC and Gujarat Industries Power Company Ltd quoted Rs 1.94 per unit, a source said. CLP India Private Limited quoted Rs 1.95 per unit for its gas-based power plant.

As many as 11 power plants had qualified in technical round to participate in today’s auction for the domestic gas-based projects (DGP). The successful bidders included NTPC Ltd’s Dadri and Auraiya plants. All the five plants, which will get R-LNG supplies, will generate 1.43 billion units of electricity during the period from October 1, 2015 to March 31, 2016.

As per the tender document, the tariff for this round of the bidding was fixed at a maximum of Rs 3.39 per unit. Yesterday, 13 stranded gas-based power plants with an installed capacity of 8,262.08 MW had emerged as successful bidders for government subsidy worth Rs 1,590 crore for buying imported LNG to restart their plants. These 13 plants would generate 11.03 billion units of electricity which will be supplied at or below Rs 4.70 per unit to discoms from October 1 to March 31, 2016.

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