GMR Energy on Thursday said that two of its power plants in Andhra Pradesh, have been allocated gas, in a government-led auction, aimed at reviving operations of stranded power plants that did not have enough gas to produce electricity.
GMR Energy’s gas-based power plants — GMR Vemagiri Power Generation Ltd. and GMR Rajahmundry Energy Ltd., – both in Andhra Pradesh have been allocated gas following an electronic auction held on September 15, the company said in a statement. This was the second round of bidding under the government’s policy introduced in March this year, to offer liquefied natural gas to get power plants devoid of gas to resume producing electricity, it said.
With allocation of gas, GMR Energy said the two power plants with total combined electricity generation capacity of 1138 Megawatts, could now start operating “over the next six months starting October, 2015 at equivalent to 50% Plant Load Factor (PLF) – up from 25% PLF in the previous round.”
The operations at these plants would continue until March 2016, it said. And added that the Indian government would call for fresh bids for allocating gas after March, the statement read.
Apart from allocation of gas, the government would also “subsidize the power distribution companies to the extent of Rs 1.44 per unit from the PSDF for the power procured from these two plants,” it said further.
GMR Energy, is a unit of GMR Infrastructure. It has a portfolio of 3000 MW of coal based assets and 1350 MW of Gas based assets. It also operates 25 MW solar plant and is in the process of developing hydro portfolio of about 2000 MW, the statement added.