NTPC's demand for lower natural gas price for gas-fired power plants is unreasonable, says Dharmendra Pradhan, Minister for State (Independent Charge) for Petroleum and Natural Gas.
"NTPC needs to augment its capabilities to operate at gas prices above $5 per million British thermal units," said Pradhan while inaugurating the International O & M Conference of NTPC.
Pradhan's comments come as domestic gas prices stand at $4.22 per mBtu and are expected to drop 15 per cent lower from April.
He pointed to the model Ratnagiri Gas and Power as something that can be emulated by future gas based power plants. The facility also has an LNG terminal next to the power plant.
While criticising the demand for cheaper natural gas, Pradhan complimented NTPC's efforts for clean energy.
"NTPC as a power purchaser has helped in achieving record low tariff of Rs 4.34 a unit for solar power," said Pradhan.
Meanwhile, a senior NTPC official at the event said that the coal-based thermal power plants would need to increase capacity to meet the demand for the changing energy mix of the country and ensure grid stability. The official added that one of the reason for lower plant load factors is also the increasing availability of clean energy.