Standard Post with Image

Revival of 11 GW Gas Based Power Plants Likely on Cards Courtesy Reverse E- Auctions

News:  

After two days of reverse e-auction, 18 power plants including that of NTPC and Torrent Power have emerged as successful bidders to receive subsidy of about INR 1,787.47 crore to buy imported gas, a move that will help revive a cumulative generation capacity of 11,717.72 MW. 

Source: ET 

SNP Insight:  

The stranded gas based power plants are likely to see light of the day with government's reverse e-auction scheme helping with subsidy support by the government till March 2016. However post the promised timeline the future of gas based power plants still remains a challenging proposition with a erractic domestic gas supplies and impending subsidy burden. Thus in due course of time it will be interesting to see how the government strikes the balance in ensuring gas supplies to power plants & controlling its subsisdy burden.  

Source: SNP Infra Research