Central government considering a proposal to revive gas-based capacity

The central government is reportedly considering a proposal to allow gas-based power plants to sell electricity in the spot market under a subsidy scheme. The proposed plan will enable gas-based power plants to sell electricity without depending on PPAs. As per the proposal, the government is considering the gas auction mechanism for gas-based power plants by pooling domestic gas with liquefied natural gas and subsidising the tariffs to revive about 25,000 MW of projects with support from the Power System Development Fund. The scheme is proposed to be made operational for two years beginning 2019-20.