The second round of bidding to bag Rs 2,600 crore of Government subsidy for generating power using LNG got off to a tepid start with enough buyers not coming forward for using the expensive imported fuel.
As many as 16 power stations belonging to companies like NTPC, GMR and GVK bid to get government subsidy support to buy imported liquefied natural gas (LNG) for restarting their stranded electricity generating stations.
However, not enough demand for 15 million standard cubic meters per day of gas available could be generated, sources privy to the development said.
The reverse bidding -- power companies quoting the lowest tariff at which they can generate power using imported fuel if they got the subsidy support -- would start once there is demand to take all of the 15 mmscmd gas put on offer.
The actual auction, they said, couldn't begin in absence of sufficient demand being generated. Power companies quoted for the quantity of imported liquefied natural gas (LNG) they need to restart their idle plants.
The process will continue and reverse auction at Rs 1.45 per unit floor price will start if the quantity offered is fully taken, they said.
For the auction of subsidy support, 16 bidders had been technically qualified. Power producers bidding for the lowest subsidy support will get the first right over the fuel.
“The plant load factor (PLF) for stranded gas plants will come at 35 per cent which can go up to 50 per cent in the increment of 2.5 per cent per round,” the source said.
The auction for plants receiving Domestic Gas (DGP) is also being held and “11 bids have been technically qualified for it.”
According to sources, GMR, GVK, NTPC and Lanco were among the companies that had submitted bids earlier this month to be qualified for the second phase of auction of financial assistance of Rs 2,600 crore under Power System Development Fund set up by the government.
“The maximum bidding price under the reverse auction has been fixed at Rs 4.7 per unit for stranded gas based plant (SGP) and Rs 3.39 per unit for domestic gas plants (DGP),” the source had earlier said, adding that the firms will bid for a total of 15 Million Metric Standard Cubic Meter Per Day (MMSCMD).
Power Ministry had invited technical bids to undertake the reverse auction of the PSDF support to eligible gas-based power plants for a period from October 1, 2015 to March 31, 2016, as per the tender.
Under the plan, liquefied natural gas (LNG) will be imported and cash-strapped state power distribution companies will be financially supported to buy electricity from them. Power plants rarely use costly imported LNG as electricity produced from the fuel would cost much more than that from a domestic coal-fuelled plant or a domestic gas-fired plant, and there would be no takers for such expensive power. In the first round, 15 projects were shortlisted through a so-called reverse e-bidding process for supply of electricity to distribution companies that was conducted by state-owned MSTC Ltd.
The successful bidders will be given Letter of Award on September 17. In the May auction, subsidy support helped revive a cumulative gas-based generation capacity of 10,270 MW resulting in generation of additional 5.70 billion units of electricity during June to September summer.
In the first round, government provided a subsidy support of Rs 843.99 crore from the Power System Development Fund to the discoms. Earlier in May, Government revived 10 stranded gas-based power projects under the PSDF scheme.
These plants had successfully bid through reverse e-auction process for generating 5.05 billion units of electricity which will be supplied at or below Rs4.70 per unit to the purchaser discom during the peak summer months of June 1, 2015 to September 30, 2015, the Power Ministry had earlier said in the release.
Further, this involved the Government support of Rs 843.99 crore from the Power System Development Fund to the discoms. The reverse e-auction for the stranded gas based plants was conducted under the newly approved scheme for utilisation of stranded gas based generation capacity.
Five power plants, including two of state-run NTPC and one of Torrent Power, have won the government subsidy worth about Rs 278 crore to buy imported LNG to make up for shortfall in domestic supplies.
On the second day of the auction for government support to power stations with inadequate supply of natural gas from domestic fields, Torrent, NTPC and Gujarat Industries Power Co quoted lower tariff than the base rate for generating electricity from imported LNG. In the reverse bidding, companies were asked to quote variable cost of power using imported LNG. The auction was conducted on the MSTC platform. Torrent Power Ltd, NTPC and Gujarat Industries Power Company Ltd quoted Rs 1.94 per unit, a source said.
CLP India Private Limited quoted Rs 1.95 per unit for its gas-based power plant. As many as 11 power plants had qualified in technical round to participate in the auction for the domestic gas-based projects (DGP). The successful bidders included NTPC Ltd’s Dadri and Auraiya plants. All the five plants, which will get R-LNG supplies, will generate 1.43 billion units of electricity during the period from October 1, 2015 to March 31, 2016.
As per the tender document, the tariff for this round of the bidding was fixed at a maximum of Rs 3.39 per unit. On the first day of bidding, 13 stranded gas-based power plants with an installed capacity of 8,262.08 MW had emerged as successful bidders for government subsidy worth Rs 1,590 crore for buying imported LNG to restart their plants.
These 13 plants would generate 11.03 billion units of electricity which will be supplied at or below Rs 4.70 per unit to discoms from October 1 to March 31, 2016. The grid connected gas-based power generation capacity in the country is 24,150 MW. Of this, a capacity of 14,305 MW had no supply of domestic gas. This comprises of 29 plants that were eligible to participate in the auction held on Tuesday.
The successful bidders will be issued letter of award soon. Under the plan, liquefied natural gas (LNG) will be imported and cash-strapped state power distribution companies will be financially supported to buy electricity from them. Power plants rarely use costly imported LNG as electricity produced from the fuel would cost much more than that from a domestic coal-fuelled plant or a domestic gas-fired plant, and there would be no takers for such expensive power.
As many as 16 power stations belonging to companies like NTPC, GMR and GVK bid to get government subsidy support to buy imported liquefied natural gas (LNG) for restarting their stranded electricity generating stations.
However, not enough demand for 15 million standard cubic meters per day of gas available could be generated, sources privy to the development said.
The reverse bidding -- power companies quoting the lowest tariff at which they can generate power using imported fuel if they got the subsidy support -- would start once there is demand to take all of the 15 mmscmd gas put on offer.
The actual auction, they said, couldn't begin in absence of sufficient demand being generated. Power companies quoted for the quantity of imported liquefied natural gas (LNG) they need to restart their idle plants.
The process will continue and reverse auction at Rs 1.45 per unit floor price will start if the quantity offered is fully taken, they said.
For the auction of subsidy support, 16 bidders had been technically qualified. Power producers bidding for the lowest subsidy support will get the first right over the fuel.
“The plant load factor (PLF) for stranded gas plants will come at 35 per cent which can go up to 50 per cent in the increment of 2.5 per cent per round,” the source said.
The auction for plants receiving Domestic Gas (DGP) is also being held and “11 bids have been technically qualified for it.”
According to sources, GMR, GVK, NTPC and Lanco were among the companies that had submitted bids earlier this month to be qualified for the second phase of auction of financial assistance of Rs 2,600 crore under Power System Development Fund set up by the government.
“The maximum bidding price under the reverse auction has been fixed at Rs 4.7 per unit for stranded gas based plant (SGP) and Rs 3.39 per unit for domestic gas plants (DGP),” the source had earlier said, adding that the firms will bid for a total of 15 Million Metric Standard Cubic Meter Per Day (MMSCMD).
Power Ministry had invited technical bids to undertake the reverse auction of the PSDF support to eligible gas-based power plants for a period from October 1, 2015 to March 31, 2016, as per the tender.
Under the plan, liquefied natural gas (LNG) will be imported and cash-strapped state power distribution companies will be financially supported to buy electricity from them. Power plants rarely use costly imported LNG as electricity produced from the fuel would cost much more than that from a domestic coal-fuelled plant or a domestic gas-fired plant, and there would be no takers for such expensive power. In the first round, 15 projects were shortlisted through a so-called reverse e-bidding process for supply of electricity to distribution companies that was conducted by state-owned MSTC Ltd.
The successful bidders will be given Letter of Award on September 17. In the May auction, subsidy support helped revive a cumulative gas-based generation capacity of 10,270 MW resulting in generation of additional 5.70 billion units of electricity during June to September summer.
In the first round, government provided a subsidy support of Rs 843.99 crore from the Power System Development Fund to the discoms. Earlier in May, Government revived 10 stranded gas-based power projects under the PSDF scheme.
These plants had successfully bid through reverse e-auction process for generating 5.05 billion units of electricity which will be supplied at or below Rs4.70 per unit to the purchaser discom during the peak summer months of June 1, 2015 to September 30, 2015, the Power Ministry had earlier said in the release.
Further, this involved the Government support of Rs 843.99 crore from the Power System Development Fund to the discoms. The reverse e-auction for the stranded gas based plants was conducted under the newly approved scheme for utilisation of stranded gas based generation capacity.
Five power plants, including two of state-run NTPC and one of Torrent Power, have won the government subsidy worth about Rs 278 crore to buy imported LNG to make up for shortfall in domestic supplies.
On the second day of the auction for government support to power stations with inadequate supply of natural gas from domestic fields, Torrent, NTPC and Gujarat Industries Power Co quoted lower tariff than the base rate for generating electricity from imported LNG. In the reverse bidding, companies were asked to quote variable cost of power using imported LNG. The auction was conducted on the MSTC platform. Torrent Power Ltd, NTPC and Gujarat Industries Power Company Ltd quoted Rs 1.94 per unit, a source said.
CLP India Private Limited quoted Rs 1.95 per unit for its gas-based power plant. As many as 11 power plants had qualified in technical round to participate in the auction for the domestic gas-based projects (DGP). The successful bidders included NTPC Ltd’s Dadri and Auraiya plants. All the five plants, which will get R-LNG supplies, will generate 1.43 billion units of electricity during the period from October 1, 2015 to March 31, 2016.
As per the tender document, the tariff for this round of the bidding was fixed at a maximum of Rs 3.39 per unit. On the first day of bidding, 13 stranded gas-based power plants with an installed capacity of 8,262.08 MW had emerged as successful bidders for government subsidy worth Rs 1,590 crore for buying imported LNG to restart their plants.
These 13 plants would generate 11.03 billion units of electricity which will be supplied at or below Rs 4.70 per unit to discoms from October 1 to March 31, 2016. The grid connected gas-based power generation capacity in the country is 24,150 MW. Of this, a capacity of 14,305 MW had no supply of domestic gas. This comprises of 29 plants that were eligible to participate in the auction held on Tuesday.
The successful bidders will be issued letter of award soon. Under the plan, liquefied natural gas (LNG) will be imported and cash-strapped state power distribution companies will be financially supported to buy electricity from them. Power plants rarely use costly imported LNG as electricity produced from the fuel would cost much more than that from a domestic coal-fuelled plant or a domestic gas-fired plant, and there would be no takers for such expensive power.
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