Central government mulling over subsidy scheme for gas-based power projects

The central government is considering a Rs 180 billion subsidy scheme to provide imported gas at subsidised rates to stranded power projects. A high-level empowered committee has suggested that the power and the oil ministries jointly develop a scheme for the revival of 25 GW of gas-based plants along the lines of the earlier e-bid regasified LNG scheme. As per the scheme, the government is considering a gas auction mechanism for generating units by pooling domestic gas with LNG and subsidising tariffs.