GMR Energy has secured gas allocation for two of its gas-based plants - GMR Vemagiri Power Generation Limited (GVPGL) and GMR Rajahmundry Energy Limited (GREL) — both located in Andhra Pradesh.

This gas allocation comes through a fresh round of e-bidding conducted by the Government on September 15. This was the second round of bidding under the “Scheme for Utilization of Stranded Gas based power Plants,” launched by the Centre in March 2015.

These two plants, with total capacity of 1138 MW, now can operate over the next six months starting October 2015 at equivalent to 50 per cent Plant Load Factor (PLF), up from 25 per cent PLF in the previous round.

While the 370 MW GMR Vemagiri Power Generation commenced operation in August 2015, the 768 MW GMR Rajahmundry Energy is expected to commence operation soon.

A GMR Energy spokesperson, in a statement to BSE said, “We are happy to receive gas, which will help rationalise the power tariff and improve the power supply scenario of the State.”

With the current allocation of gas, operations will continue till March 2016 and thereafter the Government will call for a fresh round of bidding.

The scheme envisages Government subsidies from the Power System Development Fund (PSDF) through a transparent e-bidding process. The Government subsidises the power distribution companies to the extent of Rs 1.44 per unit from the PSDF for the power procured from these two plants.

GMR Energy has a portfolio of 3000 MW of coal based assets and 1350 MW of Gas based assets. Besides this, it also operates 25 MW solar power plant and is in the process of developing hydro portfolio of about 2000 MW.

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