Economy

Global bids for long-term gas supply on the cards: Goyal

Our Bureau New Delhi | Updated on January 22, 2018 Published on November 24, 2015

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The government plans to call for global bids for tying up long-term supply of natural gas for the power sector, Piyush Goyal, Minister of State (Independent Charge) Power, Coal and New & Renewable Energy, said on Tuesday.

“Considering that natural gas prices are low at this stage, we are planning to open bids for long-term supply (for five, seven or 10 years). This would not only supplement the existing gas pooling mechanism which is there till 2017, but also add to the gas supplies beyond that,” Goyal said on the sidelines of Assocham’s Annual Conference.

Earlier, addressing the event, Goyal said that the government plans to engage with international suppliers for long-term contracts.

He added that the gas pooling mechanism has already helped gas-based power plants generate more electricity. Under the mechanism power plants are provided pooled gas and states are provided a subsidy from the Power System Development Fund to buy that electricity.

The Minister also said that talks have begun with five-six States for signing a Memorandum of Understanding under the Ujwal Discom Assurance Yojana. According to Goyal, the agreements will be signed ‘very soon’.

Further, the Ministry for Power has also identified three-four ultra mega power projects to be bid out soon. “Cheyyur in Tamil Nadu will be one of the UMPPs to be bid out. In Bihar, I am in talks with the state government to expedite a UMPP in Banka,” said Goyal.

Published on November 24, 2015
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