NTPC, Torrent, CLP India and Gujarat State Electricity Board won subsidies that will help them buy costlier imported gas (LNG) to boost electricity generation, reported PTI

A day after 10 power plants, mostly of private sector, won government subsidies that will help them restart stranded stations, the four won support to raise electricity generation at their units that were crippled due to sub-optimal domestic gas supplies.

In all, eight power generators bid in the tender of 1.1 million standard cubic meters per day of imported gas (liquefied natural gas) in the second and final phase of the reverse auction conducted by the Power Ministry.

This will involve government support of Rs 119.99 crore from the Power System Development Fund.

The government offered a maximum of Rs 2.06 per unit subsidy to help them produce electricity at no more than Rs 5.50 per unit using imported LNG, whose indicated ex-port price was USD 8.5 per million British thermal unit (delivered price of USD 9-9.5 per mmBtu).

Companies were asked to quote subsidy they need to generate electricity at that rate and those quoting the lowest walked away with the gas.

The auction ended with the lowest price bid of Rs 1.75 per unit, according to auction information available.

The four bidders have 4,871 MW of electricity generation capacity that currently is running at sub-optimal capacity because of domestic gas scarcity.

The auction concluded with only a single participant submitting the lowest price bid of Rs 1.75 per unit, according to the auction details.

Of the remaining four bidders, three submitted the financial bid at Rs 1.96 per unit and one at Rs 1.97 per unit.

The auction started at a base price of Rs 2.06 per unit, considering a plant load factor (PLF) or capacity utilisation of 35 per cent of the installed capacity.

About 1.1 mmscmd of gas has been offered to plants that are receiving gas from domestic fields but at sub-optimal levels.