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News Brief | June 2013

Gas sought for power generating plants from non-core sectors

To feed power generating stations the Union Power Ministry has asked for gas diversion of six million standard cubic metre per day (mmscmd) from non-core sectors such as steel mills, refineries and petrochemical plants. The Union Minister of State for Power Jyotiraditya Scindia on May 6 wrote to Petroleum Minister M Veerappa Moily that a large number of gas based-power plants is getting stranded. The new capacities in the sector which were added based on KG D6 gas availability are now on the verge of becoming non-performing assets, as gas supply from the fields has stopped. Scindia's move comes at a time when an empowered group of Ministers headed by Defence Minister AK Anthony is likely to meet to consider priority between various users of domestic natural gas. Currently, there are 18,714 MW of gas-fired stations that require 72 mscmd of gas to operate at 75 per cent plant load factor. Against this requirement, the actual gas supply to these plants is about 27 mscmd that allows the units to operate at 29 per cent plant load factor.
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