Electricity May Turn Cheaper as Power Firms Secure Gas at Economical Rates

NEW DELHI: Electricity tariff could cost less, as nine companies have been assured of 8 Million Metric Standard Cubic Meter Per Day (MMSCMD) of imported gas for running their stranded power projects.
MMSCMD is the commonly used measure of natural gas and other gases that is extracted, processed or transported in high quantities. “It is a good development since the consumers, corporate and the government will benefit from this auction. Not only southern states but the whole country will benefit with the availability of low cost power,” said Gaurav Moda Head of Oil & Gas Practice, KPMG, said. Imported gas will be soon available to companies like GVK, GMR, Lanco, Gama and Dabhol, 6.79 billion units of electricity will be supplied at or below Rs 4.70 per unit to the purchaser Discoms during the period from1st April 2016 to 30th September 2016, according to the Power Ministry.
“Most of these companies were languishing for ages and the auction brings them back into business. This also allows them to grow and expand, and out of debt and provide better service and lower cost of power,” said Moda. In an auction conducted by state-run MSTC Ltd for re-gasified natural gas the bidders bid for gas ensured an earning of Rs 18 crore to the government. Ratnagiri Gas and Power Private Ltd known as Dabhol will get 2.35 mmscmd gas, Lanco Kondapalli Power  1.58 and GMR Rajahmundry Energy 1.09, Konaseema Gas Power 0.71, Pioneer Gas Power 0.55, GMR Vemagiri Power Generation 0.52, Gama Infraprop Private Ltd 0.35,GVK Industries 0.32 and Sravanthi Energy 0.25 mmscmd. The Empowered Pool Management Committee, is responsible for imported gas under the Power System Development Fund (PSDF).
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