With government’s initiative to provide subsidy on auction of imported natural gas, the gas based power generation will receive a big thrust

India: Major power generation companies such as NTPC, GMR, Tata Power etc. shall be competing to get Rs 1,600 crore of government subsidy in an e-auction which will be held on march 15^th. This is going to be third reverse auction for subsidy support to buy 10 million standard cubic meters of gas per day and it can support 24 gigawatts of electricity generation.

TechSci Research finds out that the low domestic production of natural gas coupled with increasing demand from the key end users has widened the demand supply gap in India. The demand for cleaner fuel in India is increasing due to environmental concerns and natural gas is clean source of energy. Majority of gas based power generation in India has remained stranded due to lack of production and high price of imported natural gas. The high price of imported natural gas has made gas based power generation costlier than coal based power generation and domestic gas enabled electricity.