27 September, 2020

“It’ll Be Impossible To Sell Gas-Based Power”

NTPC chairman and managing director feels it may be more viable to instead look at imp­orted coal.

“It’ll Be Impossible To Sell Gas-Based Power”
outlookindia.com
-0001-11-30T00:00:00+05:53

Expensive gas-based power has few takers, says state-run NTPC chairman and managing director Arup Roy Choudhury, who feels it may be more viable to instead look at imp­orted coal. (NTPC has a 2005 lawsuit against Reliance to buy gas at $2.34/MMBTU). Exc­erpts from an interview with Lola Nayar:

What would be the impact of the gas price increase?

The proposed gas price increase will add Rs 2-2.5 per unit (of electricity). I don’t think it will find favour with state power distributors. Nobody is willing to pay Rs 6-7 per unit of power. States like Maharashtra, Gujarat, UP and Delhi have been refusing gas-based generation as fuel cost of gas (at variable cost) at present per unit is in the range of Rs 2.40-2.90. If at $4.2 per MMBTU we are finding it difficult to sell power to the state utilities, at the proposed price, it will be impossible to sell gas-based power. The rising cost of the dollar will also add to the burden of the beneficiaries significantly. In this scenario,...

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