Two gas-based power plants of GMR Energy in Andhra Pradesh have got letter of intent for gas allocation for four months beginning June. The plants – GMR Vemagiri Power Generation Ltd. with a capacity of 388 MW and the 768 MW GMR Rajahmundry Energy Ltd – emerged successful bidders in the online reverse auction process organised by Ministry of Power for stranded gas-based power plants.
Announcing this on Friday in a statutory filing to the stock exchanges, GMR Infrastructure Ltd said that the gas allocation will enable both plants to run at 25 per cent load factor for capacities of 370 mw (GVPGL) and 384MW (GREL).
The two companies would be entitled to a subsidy support of Rs.1.44 per unit over and above the limit of Rs.4.70 per unit payable by power purchasers for the units generated with the allotted gas quantity. This scheme, the filing said, is as per the programme for gas auction finalised by the Ministry. The allocation would facilitate commissioning of GREL and operation of both the plants.
Early last month, GMR Infrastructure had announced the resumption of power generation by GVPGL following the supply of re-gasified LNG by Andhra Pradesh and Telangana Governments. This supply, through GAIL (India) Ltd. was until April 30.
