Allocation of New Exploration Licensing Policy Gas only to Power plants agreed to Supply entire Electricity to Distribution Licensees.
Empowered Group of Ministers (EGoM) has decided that the existing and future allocations of New Exploration Licensing Policy (NELP) gas to power plants be subject to the condition that the entire electricity produced from the allocated gas shall only be sold to the Distribution Licensees at tariffs determined or adopted (in case of bidding) by the tariff regulator of the power plant. The gas will be supplied only for the duration of the Power Purchase Agreement (PPA) and supply of gas will start only after the signing of PPA. The PPA may be initially for one year (short term PPA) during which electricity shall be sold at the tariff determined by the regulator and the subsequent PPA should be for medium term or long term.
The EGoM also authorized the Ministry of Petroleum & Natural Gas (MOP&NG) to cancel the current allocation of any power plant(s) not complying with the aforesaid conditions.
No complaint has been received in this Ministry regarding power plants not adhering to the directions of the Government neither MOP&NG has intimated such aberration.
This information was given by MoS (I/C) Power Sh. Jyotiraditya M. Scindia in Lok Sabha today.
