The gas-based power plants of GVK Power, Lanco Infratech, GMR and others, all based in Andhra Pradesh, are functioning at less than 50 per cent of installed capacity due to reduced supply of gas .
Since all indications point to gas supplies from KG Basin likely dwindling to 27 mmscmd from 35-36 mmscmd , these plants may have to shut down or run only for three days a week as supply will fall below threshold levels, according to Chairman and Managing Director of AP Transco, Mr Ajay Jain.
Mr Jain told
These plants are functioning at 48.5 to 49 per cent capacity. If this falls below the threshold of 40 per cent, then it would not be financially viable to run them. “The other option is swapping of RLNG with willing consumers. This is expensive. Due to inadequate gas supply, the State is short by 30 million units a day. The limitation of grid in overall evacuation capability adds to the problem,” he said.
The Managing Director of AP Gas Power Corporation, Mr Venkateswara Reddy told Business Line that the corporation was pinning its hopes on the E-GoM for fuel allocation, as the cut in supply was causing hardship to industrial consumers, and resulting in financial loss.
INDUSTRIES HIT
Giving the consumer's perspective, the Vice-President of FAPCCI, Mr Devendra Surana, said “power cuts are back in a big way for the industry with two-day power holiday and four-hour cuts during peak hours every day. We are back to where we were in the last quarter of 2011.”
Mr Surana said the Government should either ensure power supply or allow us ‘open access' to enable the industry to buy power from merchant power plants. Added to this, during a recent public hearing, there were enough indications of a power tariff hike for industries. The industries face the prospect of become sick and possibly closure with power cuts on one side and hike in tariff on the other.
“The shortage of power generation is likely to cause hardship to consumers as we are not able to optimally use the installed capacity. What is even more distressing is that, of the 4,000-MW gas-based fresh capacity coming up in the State , about 1,400 MW is close to being commissioned. Therefore, the Empowered Group of Ministers (E-GoM) needs to reprioritise the fuel allocation and ensure there is supply to run these plants,” he said.