Price pooling has been proposed by the Union Power Ministry for imported and domestically produced natural gas to be supplied to power plants stranded by a drop in production of the fuel from Reliance Industries’ KG-D6 block. The ministry floated a Cabinet note last week to seek government’s permission to pool imported liquefied natural gas (LNG) with the fuel available from the KG-D6 block after meeting the requirements of fertiliser units.
The decision is aimed at helping gas-starved power plants. Under the gas-pooling mechanism, around 3,000 mw capacity power plants will get gas in 2014-15. The electricity produced from these plants will be sold at a tariff of Rs 7 per unit, the Union Power Ministry said. The proposed electricity tariff was derived after pooling the prices of imported and domestic gas and deducting government subsidy, which requires approval, the official said.
The gas tariff may increase to Rs 7.50 per unit in 2015-16, when gas will be made available to additional power plants.
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