Power subsidy bidding: 13 stranded plants win on Day 1

Thirteen stranded gas-based power plants with an installed capacity of 8,262.08 MW emerged as successful bidders today, getting government subsidy of Rs 1,590 crore for buying imported LNG, to restart their stranded electricity generating stations.
"The government is delighted to announce the revival of 13 stranded gas-based power generation plants with an installed capacity of 8,262.08 MW who have successfully bid through a transparent and competitive e-auction process," an official statement said.
However, the names of the successful companies were not disclosed.
As many as 16 power companies, including GMR, GVK and Lanco, were in the fray today to get government subsidy support to buy imported LNG for restarting their stranded electricity generating stations.

The government is offering a total subsidy of Rs 2,600 crore through reverse auction route.
The auction started at a base price of Rs 1.45 per unit.

The 13 plants would generate 11.03 billion units of electricity which will be supplied at or below Rs 4.70 per unit to the discoms during the period from October 1 to March 31, 2016, the statement said.
"This will involve government support of Rs 1,590.09 crore from the Power System Development Fund (PSDF)," it added.
The present auction of stranded gas-based plants is the second phase of auctions conducted under scheme of utilisation of stranded gas-based generation capacity.

"Compared to first phase, the second phase has offered increased gas to more number of plants at a higher PLF," the statement added.
The grid connected gas-based power generation capacity in the country is 24,150 MW.
Of this, a capacity of 14,305 MW had no supply of domestic gas. These comprise 29 plants which were eligible to participate in the auction held today, it said.
"For 13.5 million standard cubic feet per day (MMSCMD) of imported re-gasified liquefied natural gas (RLNG) available, 16 plants with a cumulative installed capacity of 8,974 MW participated in the bidding," it added.
The successful bidders include power plants in southern region.

"The generation from these plants would improve the power availability in the southern grid, mitigating to a large extent the shortage of availability and constraint of evacuating the power to the southern region from other regions," the statement said.
The auction for plants receiving Domestic Gas (DGP) will be held tomorrow and "11 bids have been technically qualified for it".
According to sources GMR, GVK, NTPC and Lanco were among the companies that had submitted bids earlier this month to be qualified for the second phase of auction of financial assistance under Power System Development Fund set up by the government.