Coal news and updates

PowerMin kick-starts e-auction for PSDF support

May 12: The Ministry of Power, on May 12, kick-started the e-auction process for Power System Development Fund (PSDF) support to stranded gas-based power plants for using imported natural gas to feed their units.

Altogether, 14 stranded plants (not getting any domestic gas supply) with a combined capacity of 8,100 MW and belonging to companies such as GVK, GMR and LANCO, took part in the auctions, according to information available with ICMW.

The auction process was broken into two rounds. In the first round, technically qualified bidders had to quote the total additional electricity to be generated at the target plant load factor (PLF), subject to some pre-laid down conditions.

In the second round, the bidders had to bid for the least amount of PSDF support required. Bids were to be less than the cap and higher than zero. The auction began at 11 am and was still continuing at the time of this report.

The available gas is for the June-September quarter. Fresh auctions will be held for the October-December quarter.

Overall, the government expects an outgo of Rs 792 crore as PSDF support for the current quarter. For the full year, the support has been earmarked at Rs 3,500 crore.

Auction for the plants receiving some domestic gas is scheduled to start on May 13.