It aims to address pressures from gas unavailability.
The Indian government has proposed to set up a priority gas allocation mechanism for the power generation sector for the next two financial years. It would pool ONGC deep offshore gas with imported LNG and supply it to the domestic power plants. The government is mulling over two options, either by auctioning the gas or by allocating it to power projects by rotation.
The rationale behind this proposal is the difficult situation of India's operational gas-fired capacity, which is under pressure because of gas unavailability. India's power sector currently gets around 40% of the total domestic gas distributed throughout the country and NTPC consumes a significant portion of it with its seven gas-fired power plants.
This article was originally published by Enerdata.
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