NTPC among successful bidders for LNG subsidy

By: | Updated: August 12, 2016 12:12 PM

The second day of imported re-gassified liquified natural gas (RLNG) auction saw gas-based power plants...

The second day of imported re-gassified liquified natural gas (RLNG) auction saw gas-based power plants, with a combined capacity of 3,401 MW, share 1.1 mmscmd of available gas to run these capacities at the 35% plant load factor (PLF).

Out of the five successful bids, two came from NTPC, one from Gujarat-owned GSC and the other two from the private sector. A total of 9,845 MW capacity has been running at sub-optimal PLF due to scarcity of domestic gas. With the subsidised imported gas, these five units can now run at 35% PLF. The monetary support required for the capacity from the Centre is between R1.75-1.96 per unit.

The government had made 10 mmscmd of gas available for bidding — 8.9 mmscmd for stranded plants and 1.1 mmscmd for those receiving some domestic gas for June-September. As per the scheme, the Centre will again invite bids for 15 mmscmd of imported RLNG post -September.

Experts believe that while the scheme will enhance production from plants already running on domestic gas, the auction will bring relief to successfull stranded plants with a combined capacity of 6, 867 MW. These units will now be able to service their debt which would help them from being classified as non-performing assets (NPAs) by their lenders.

As per official estimates, total gas based capacity—both stranded and those running at sub-par PLF—account for investment worth nearly R1,00,000 crore.

For Updates Check Economy News; follow us on Facebook and Twitter

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition