Gas subsidy auction ends with lowest price bid of Rs 1.75/unit
The auction started at a base price of Rs 2.06 per unit
New Delhi: The auction of government subsidy for use of imported LNG in gas-based power plants, currently getting sub-optimal supplies, ended on May 13 with the lowest price bid of Rs 1.75 per unit. Eight power generators, including NTPC and Torrent Power, bid in the tender of 1.1 million standard cubic meters per day of imported gas (liquefied natural gas). The bidders have 4,871 MW of electricity generation capacity that currently is running at sub-optimal capacity because of domestic gas scarcity.
The bidding round concluded with only a single participant submitting the lowest price bid of Rs 1.75 per unit, according to the auction details. Of the remaining four bidders, three submitted the financial bid at Rs 1.96 per unit and one at Rs 1.97 per unit. The auction started at a base price of Rs 2.06 per unit, considering a plant load factor (PLF) or capacity utilisation of 35 per cent of the installed capacity. About 1.1 mmscmd of gas has been offered to plants that are receiving gas from domestic fields but at sub-optimal levels.
The country's largest power producer, NTPC, participated in the second round of auction to receive subsidised gas for its four gas-based plants - Auraiyya, Dadri, Kawas and Gandhar. The other bidders include CLP India, Gujarat State Energy Generation and Gujarat State Electricity Corporation. Power producers bidding for the lowest subsidy will get the first right over the fuel. Overall, 31 power stations with a combined capacity of 14,305 MW are languishing because of want of gas.
They can bid for support from the Power System Development Fund (PSDF) for generating 30 per cent of their installed capacity, called plant load factor, using imported Liquefied Natural Gas. Yesterday, power companies bid aggressively for receiving government subsidy to import LNG to restart stranded gas-based plants with the lowest price bid of Rs 1.42 per unit.