The domestic power sector has notched remarkable advances over the last few years across the entire value chain. With the highest coal production growth in over two decades adding to fuel supply scalability, augmentation of generation capacities, increase in transmission lines and record consumption levels with the distribution of 2.3 crore LED bulbs, India has emerged as the fifth largest producer and consumer of electricity with a capacity of 302 GW.
Impact of costs should get pass through in tariffs
Preliminary estimates indicate capital expenditure requirement in the range of Rs.1.25 Cr/MW to Rs.1.5 Cr/MW, i.e about 20-25 per cent of the capital cost of a coal based power plant. Considering the above estimates, the total outlay involved could be about Rs.2.5 lakh crores.
Reviving Gas Based Plants
Much water has flowed under the bridge since the first natural gas find in the west coast of India in eighties and subsequently laying of Hajira-Vijaypur-Jagdishpur (HVJ) gas pipeline.
Rs.1,600-cr gas subsidy auction on March 15
State-owned NTPC, Essar Power, GMR and Tata Power are among the power producers competing to get Rs.1,600 crore of government subsidy to procure costlier imported gas for their stranded units.
GAS or Reality
The recent positive developments have raised the hopes of revival of natural gas-based power sector in the country, where many plants were either closed or operating at lower than optimal levels.
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