State-owned NTPC, Essar Power, GMR and Tata Power will participate in two days auction for Rs 1,600 crore subsidy for buying costlier imported gas for running their power plants beginning on Tuesday. This is the third reverse e-auction for subsidy support for buying 10 million standard cubic meters per day of gas will be held on March 15 and 16.
“State-run MSTC ltd will conduct third reverse e-auction to provide a total subsidy of Rs 1,600 crore for purchasing RlNG (R-liquefied Natural Gas) imported by GAIl on March 15 and 16,” a senior official told PTI. “Earlier MSTC ltd had planned to conduct the auction on March 15. But later the plan was changed and it was spread over two days. The auction will start at 2:00 PM and likely to be over in two or three hours on both days,” official added.
While the auction of stranded gas-based power projects (SGP) will be held on Tuesday the domestic gas-based power projects (DGP) bid for the gas subsidy on Wednesday. While the Government will offer Rs 1,400 crore subsidy for SGPs, the DGPs will be offered Rs 200 crore to buy imported gas to run their plants.