Central government plans to launch scheme for stressed gas-based power projects

The central government is planning to launch a new scheme to enable stressed gas-based power projects to operate on a mix of domestic and imported gas. The proposed move will prevent assets with over Rs 1 trillion of debt from turning into non-performing assets. The proposed scheme, akin to the e-bid regasified LNG scheme, is expected to benefit projects aggregating about 25,000 MW that are currently operating at suboptimal plant load factors of 25-30 per cent. As per initial discussions, the new scheme will be based on a gas auction mechanism where plants quoting the least subsidy support to offer electricity to discoms will be selected.