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The government has taken a decision to revive the power generation by the gas based projects. According to the new decision, the imported gas would be supplied at subsidized rates through the process of reverse e-bidding. The stranded or idle plants of 14,305 MW capacity would resume their work.
Fall in the production or gas supply by Reliance Industries in KG D6 block affected the plants in Southern region, so the power deficit intensified. The cabinet decision taken on Wednesday would enable significantly by around 79 billion units, valued at about Rs 42,000 crore. The decision was to import regasified liquefied natural gas (RLNG) and supplying to the stranded plants, and exempting certain taxes and levies by the state players also.
By combining or mixing the gas imported and produced in domestic stations, the gas based power plants can sufficiently re-start producing. To revive the power generation by using RLNG, gas transporters and re-gasification terminals have agreed to reduce their transportation tariff, marketing margin and re-gasification charges on the incremental RLNG.
Due to deficit in gas supply nearly 14,305 MW was idle out of 24,150 MW total capacity. The move also benefits private players in various parts of India.
-Kannamsai
