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Indian gas based power companies seek subsidised natural gas imports

Power News - Published on Thu, 07 Dec 2017

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Economic Times reported that gas based power producers have asked the government to revive the projects by reintroducing an earlier scheme to supply subsidised imported natural gas. The 25,000 MW gas-based domestic plants, of which over 14,000 MW are stranded, have a debt of more than INR 48,000 crore either declared as bad loans or undergoing restructuring.

Power producers have demanded reintroduction of the scheme along with other tax benefits including waiver of taxes by central and state governments on imported natural gas gas, reduction of pipeline tariff charges, marketing margin, regasification charges and power transmission charges.

They have also demanded reserving unallocated 5.45 mmscmd of ONGC gas in the KG Basin for the power sector and reallocation of at least 10 mmscmd gas to stranded power plants from the 13 mmscmd of APM gas currently supplied to noncore sectors such as refineries and petrochemicals, steel and other industries. At present, domestic gas is supplied to the priority sectors like fertiliser units, city gas distribution and the power sector.

Private power producers representing gas-based power plants held a meeting with senior power ministry officials last month. The meeting, however, ended without any conclusion due to high electricity tariffs from these power plants, a government official said.

Association of Power Producers director general Mr Ashok Khurana said that “Reintroduction of e-RLNG scheme will provide transitory support and help this stranded gas capacity to service their interest, thereby saving them from becoming NPAs and being mothballed.”

The scheme for importing spot regasified LNG was started in 2015-16 for stranded gas-based power plants and plants receiving inadequate domestic supply of the fuel.

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Posted By : Nanda Koijam on Thu, 07 Dec 2017
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