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REGULATION | Cesar Tordesillas, India
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Indian power companies oppose gas allocation to new groups

India's existing power companies are opposing gas allocation to mushrooming power capacities.

 

Spectrum Power and GVK are no exceptions.

The two companies argued that where the existing power plants are having difficulty in getting the allocated gas for their projects, it is ironic to see the new plants pressing the petroleum ministry for diversion of gas from the existing operating plants for their commissioning.

Furthermore, the two firms stated that since they had gone ahead with the construction of their projects without having firm allocation of natural gas from the petroleum ministry, these developers had actually taken a calculated risk of setting up projects without fuel supply contracts being in place.  In such a scenario, the gas should not be given to their projects from the existing gas available and the existing power plants, which are already in deep financial stress and are not able to sustain even at the current gas supply levels, should get the ministry's
priority.

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