Indian gas-fired power plants bid for fuel subsidy

Power utilities in India are queuing up for inclusion in a competition for subsidies for supply of imported gas for their power plants that have stopped production due to non-availability of the fuel.
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The Indian power ministry received bids from gas-fired power plants with combined stranded capacity of 8000 MW, seeking the subsidy under the Power System Development Fund for imported natural gas.

The subsidy support is for distribution companies to bring down electricity tariffs and make the cost of power affordable.

India's total gas-based power generation capacity is 27,123 MW. Out of this, plants with capacity of 14,305 MW are stranded due to non-supply of gas, while those with 9,845 MW receive limited domestic gas.

The qualified bidders will now participate in the e-auction on Tuesday where the financial bids will comprise two points: the total incremental electricity they the plants generate after winning the bid and the per-unit subsidy they require.

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