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Solar may mature as revival package for stressed gas based power plants

Around 24,000 MW of gas based power generation plants are stressed out. To revive these plants, Power and Petroleum Ministry is working out on a plan to bundle gas based power with cheaper solar energy. Earlier subsidy provided to gas based power plants have been shelved and hopes are to operate power stations at 90% capacity with bundeled power. PTC shall be key agency for power disbursal where gas is proposed to be imported by GAIL India with concessions and haircuts by central and state governments. This power is proposed to be supplied at Rs. 4 per unit, bundling Rs. 2.75 of solar power. Also a ‘must-run’ status to be awarded to gas-power stations.

Bundling of power is poised to cater an economical power supply to consumers. Bundling of solar power with an equal amount of gas-based power is expected to result in lower cost of production than blending domestic and imported gas-based power. Ministry's proposal to bringing natural gas under the ambit of goods and services tax may further bring down power generation cost from gas-based power plants.