(FE)
A section of beleaguered gas-based power producers has written to Prime Minister Narendra Modi against the special favours being given to Ratnagiri Gas and Power (RGPPL) — previously Dabhol Power. In the letter, reviewed by FE, these firms sought a “level-playing field for all gas-based power plants and not single out (the incentives) for operationalisation of Dabhol”. The section of the industry alleges that RGPPL’s continuing 550 MW power supply to the Indian Railways, even after the expiry of the “scheme for operationalisation of stranded gas-based power plants”, without any tender or bidding mechanism is not in line with edicts of the Electricity Act, National Tariff Policy and the provisions of other similar regulations.
The letter states that the tariff of Rs 5.5/unit at which RGPPL is selling power to the railways is “abnormally higher” than the prevailing market prices, especially at a time when private players are finding it difficult to get state electricity distribution companies (discoms) to buy gas-based power at Rs 4.7/unit. In 2015, the government had announced a transient mechanism where gas-based power plants could run at 30% plant load factor with assured supply of gas, but subject to a tariff cap of Rs 5.50/unit. Under the mechanism, the operators of gas-based power units received monetary support from the government so as to be able to service their debt while forgoing their return on equity.
