A total of 16 stranded gas-based power plants including the likes of GMR, GVK, Lanco and NTPC will be eligible for Rs 1,590 crore of Government subsidy for running their plants at 50 per cent plant load factor on imported natural gas or re-gassified liquefied natural gas (RLNG).
The auction started at a base price of Rs 1.45 a unit subsidy being sought by the power plants for each unit of electricity. Companies were allowed to go up to Rs 4.7 a unit but as per the MSTC website, the bid remained at Rs 1.45 a unit. Further details are awaited.
Details on the allocation of the 2.239 billion cubic metres of available gas will also be announced by the Government later.