GMR Energy's power plants to receive subsidised gas

GMR Energy's gas based plants, GMR Vemagiri Power Generation Limited (GVPGL) with capacity of 388 MW and GMR Rajahmundry Energy Limited (GREL) with capacity of 768MW, have been awarded letter of intent for gas allocation for a period of 4 months namely, June-September 2015. These plants emerged as successful bidders through a highly competitive and transparent online reverse auction process organised by Ministry of Power for the stranded gas power plants.
 
The award will enable both plants run at 25% load factor for capacities of 370 mw (GVPGL) and 384 MW (GREL).
 
Based on the award, GVPGL & GREL would be entitled to subsidy support of Rs 1.44 per unit over & above the limit of Rs 4.70 per unit payable by power procurers for the units generated with the allotted gas quantity.
 
This is as per the program for gas auction finalised by Ministry of Power, gas supply for stranded plants through this process is planned for 2 years, of which this auction covers a period of 4 months. The current award would facilitate commissioning of GREL and operation of both the plants.