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Stressed power developers may choose among schemes to revive their assets

Around 24,000 MW of gas base power generation lies stranded in amidst of fuel supply bottleneck. Power ministry has floated two schemes for revival of gas-based power plants with total capacity aggregating to 4000 MW. Under one scheme 2000 MW of gas-based plants should be procured through auction where power generated shall be bundled with equal capacity of solar power and under another scheme 2000 MW will be procured through online reverse auction mechanism.  Developers may have options to choose among the schemes.

This scheme is poised to will bring almost 11,000 MW of stranded gas assets out of NPA situation. Success of this scheme would depend on prices of gas. Also waiver of taxes on imported LNG will pave a way forward to cater objective of this scheme.