Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Gas rescued power plants hit by coal shortage: GAIL

Author: IANS/Wednesday, October 4, 2017/Categories: Energy

Gas rescued power plants hit by coal shortage: GAIL

New Delhi, Oct 4 - Natural gas - a clean fuel vastly underutilised in India - came to the rescue of power plants recently faced with shortage of coal supplies, an industry leader said.

"Around three weeks back some power plants were suddenly affected by the lack of availability of coal supplies and natural gas could fortunately come to their rescue," state-run gas transmission utility GAIL India's Chairman B.C. Tripathi said while addressing the first Gas Infrastructure Conference here organised by industry chamber Ficci.

"These thermal power plants consumed around 3 million tonnes of gas to tide over the coal shortage and the crisis was resolved without anyone outside becoming aware of it," he said. 

Lamenting the relatively low utilisation of gas in the country "of between 6 to 7%", Tripathi called for wider use of the green fuel across sectors, policy reform and raising awareness for moving to a "gas economy", which the government has announced as its goal.

"In the last 10 years we could not complete a single pipeline mainly on account of questions of economic viability..because of regulatory tariffs," he said.

Detailing the economics in this regard, the GAIL chief said that building a 5-million tonne liquefied natural gas (LNG) terminal plus 1,000 km of pipelines requires an investment of Rs 10,000 crore.

"Unless such an infrastructure capacity is utilised at least 50%, and not 6-7% as currently, it is not viable...the basic challenge for industry now is to generate demand, supplies are available," he said, adding that the international market is presently quite favourable. 

Making its bi-annual revision, the government has increased the price payable for domestic natural gas by around 17% to $2.89 per million British thermal unit (mbtu) for the period October 2017 to March 2018.

Prior to this, the gas prices have been revised downward by about 50% since the implementation of the gas pricing formula in October 2014.

This is the first price increase after five consecutive domestic gas price reductions, and has been driven by an increase in the average gas prices prevalent at the reference gas hubs over last year.

The price ceiling for extracting gas from difficult deep-sea and high-pressure high-temperature areas has been raised 13% to $6.30 per mbtu.

Tripathi also called for bringing gas under the Goods and Services Tax (GST) to encourage its production and distribution. It continues to be taxed as per the old VAT regime.

Print Rate this article:
No rating

Number of views (93)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free