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Power producers seek Goyal's help over Gas pooling mechanism

As domestic fuel uncertainty threatens to render unviable over INR 1 lakh crore of investment in gas-based generation capacity, power producers have rushed to seek an intervention from power minister Piyush Goyal to ensure implementation of a gas pooling mechanism that would allow them to use blended fuel ( a mix of imported and domestic gas) for generation and keep electricity tariff at an affordable level with the help of government subsidy.

“We request you to take up the matter ( implementation of a gas pooling mechanism) appropriately with the concerned ministries to save the gas-based power generation capacity in the country,” Ashok Khuran, director general, Association of Power Producers, has said in a recent letter to the power minister.

India has 24,000 mw installed generation capacity based on gas. However, all the gas-fired plants are running at low capacity due to domestic gas shortage. The power sector comes second on the government's priority list for gas allocation.

Source-On Request