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Lack of gas supply renders power plants idle

Lack of gas supply renders power plants idle

Power Minister Jyotiraditya Scindia said 12 power projects, with a total generation capacity of 2,978.62 mw, are lying idle because they don’t receive natural gas from Reliance Industries’ KG-D6.

During first and second quarter of 2013 (till August 19, 2013), these projects, which are solely dependent on gas supply from KG-D6, did not receive any fuel.

Some of these projects include 1,000 mw Pragati Power III and 220 mw Tanirbavi plants, the minister said in Lok Sabha.

Meanwhile, the ministry argued that in the present context, power sector would be unviable if it is charged a base price of more than $5 per MMBTU of domestic natural gas.

The minister, thus, sought certain special dispensation for power sector so that it gets natural gas at a viable tariff level.

It may be recalled that the government recently approved the gas price formula based on Rangarajan Committee recommendations.

This formula would be applicable to all natural gas produced domestically from April 1, 2014, for a period of five years.

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