A total of nine gas-based power plants won bids to recieve cheap imported R-LNG that would help supply them enough fuel to help bring them up to 35 percent capacity.
The auction were a result of the government’s recent decision to supply subsidized gas to stranded power plants, with a total 27000 megawatt capacity, that have not been operating for lack of fuel. Producers seeking the lowest subsidy won the first right over 8.9 million standard cubic meters per day of imported gas on offer at reduced prices. In all, 14 plants were technically qualified to participate in the first round of reverse e-auction where bidders were asked to quote subsidy in rupees per unit they need so that they can generate electricity at maximum of Rs 5.50 a unit.
The auction started at a base price of Rs 1.74 per unit considering a plant load factor (PLF) or capacity utilisation of 35 percent of the installed capacity and the subsidy sought had come down to Rs 1.42 per unit, according to the e-auction data available.
Companies that won bids to recieve gas supply included Lanco Infra for its 1108 MW Kondapalli plant, Torrent for its 1200 MW DGEN plant, and NTPC – GAIL for their 1967 MW Ratnagiri plant. After stranded power plants, 1.1 mmscmd of gas will be offered to plants that are receiving gas from domestic fields but at sub-optimal levels.