Torrent Power today said that its gas-based power plants will get government subsidy on use of re-gasified liquefied natural gas (RLNG) for four months from June to September.
"These plants emerged as successful bidders through highly competitive and transparent online reverse auction process organised by the Ministry of Power," Torrent Power said in BSE filing.
According to the statement, Torrent Power's (TPL) - SUGEN Mega CCPP (capacity 1147.5 MW), UNOSUGEN CCPP (capacity 382.5 MW) and DGEN Mega CCPP of TPL's wholly owned subsidiary Torrent Energy (TEL) (capacity 1200 MW) have been awarded Letter of Award for allocation of gas for a period of 4 months from June 01, 2015 to September 30, 2015.
SUGEN project was getting domestic gas but it was operating at lower plant load factor (PLF). The gas subsidy will help the project to buy expensive RLNG and to run at 35 per cent PLF from the base level of about 25.60 per cent PLF.
Under the government scheme UNOSUGEN and DGEN projects were considered stranded projects as they were not getting any gas supplies.
Under government scheme UNOSUGEN and DGEN projects will get a subsidy support of Rs 1.42 per kWh while SUGEN project would be entitled to subsidy support of Rs 1.75 per kWh.
The maximum price of electricity that may be charged by DGEN and UNOSUGEN projects is Rs 4.70 per kWh and by SUGEN is Rs 3.39 per kWh, the statement said.
The allocation of gas is as per the program for gas auction finalised by Power Ministry for gas supply to stranded plants and plants receiving some domestic gas. The process is planned for 2 years of which current auction covers a period of 4 months.
Torrent Power's shares were trading at Rs 162.75 per piece on the BSE, up 0.18 per cent from the previous close.
