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The share of gas-based power in total generation plunged to 4 per cent in fiscal 2016 compared with 12 per cent in 2011, because of inadequate domestic supply and unviable LNG prices, it said.
Prasad Koparkar, Senior Director, Crisil Research said: “Despite a subsidy-based revival scheme, plant load factors (PLFs) at gas-based power generation facilities are languishing at 20-25 per cent. Even those that received subsidy could operate at only at half their target PLFs (50 per cent in the first half of current fiscal).”This was because spot prices of electricity have fallen below Rs 3 per unit, while gas-based power costs Rs 4.7 per unit after subsidy. “Therefore, further policy support, in line with the tax and duty exemptions provided to renewables, and mandatory scheduling of gas-based power, would be critical to boost gas usage in the power sector,” he said. Another key sector with significant potential is city gas distribution (CGD). Allocation of domestic gas leads to cost savings up to 30 per cent, boosting its use in the transport sector. However, lack of curbs on furnace oil — a cheaper but more polluting fuel ? have resulted in industries continuing to use it. Vladimir Ducasse Authentic Jersey
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