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News Brief | September 2014

Steps cleared on gas price pooling for power plants

The government has approved several relief measures such as exclusion of projects receiving gas under the Administered Pricing Mechanism from pooling and a financial package to benefit plants worth Rs 1.2 lakh crore stranded due to shortage of fuel. In a meeting to discuss gas price pooling for the power sector, it was decided that the Ministry of Power will evaluate its impact and possible ways to meet the revenue gap arising out of that, sources said. The government will exclude those gas-based plants, which are currently receiving APM gas from pooling. The price of gas under the APM is set by the government. Private power producers had pitched for pooling the price of domestic as well as imported gas as it would help re-start power plants worth Rs 1,20,000 crore that are not able to generate due to shortage of fuel.
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