The Union Power Ministry will seek the Union Cabinet's approval for fixing the price of gas at $5 per mmBtu (million metric British thermal unit) for the power sector, the Union Power Minister Jyotiraditya Scindia has said.
The Minister said that any additional gas produced in the country will be diverted to the power sector after meeting the requirement of the urea plants. Last month, the Minister had said that power projects would get the surplus gas until March 2016, after which the situation will be reviewed again.
Scindia added that the decision would benefit projects with a combined capacity of over 7,800 mw, he had added. The Power Ministry had sought parity for electricity utilities with fertiliser units in the allocation of gas after a drop in output from Reliance Industries' KG-D6 block led to reduced domestic supplies.
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