GMR gas plant begins operations in Rajahmundry

GMR gas plant begins operations in Rajahmundry
Highlights

GMR Rajahmundry Energy Ltd (GREL), a subsidiary of GMR Energy Limited, on Friday said its 768 MW gas-fueled power plant had commenced commercial operations with the beginning of gas supply under e-bid RLNG scheme.

Hyderabad: GMR Rajahmundry Energy Ltd (GREL), a subsidiary of GMR Energy Limited, on Friday said its 768 MW gas-fueled power plant had commenced commercial operations with the beginning of gas supply under e-bid RLNG scheme. The central government launched e-bid RLNG scheme, or scheme for utilization of stranded gas-based power plants, in March this year to supply gas to the idle gas plants in the country.

With the commencement of the e-bid scheme, the power plant which has been idle since its construction was completed can now operate at 50 per cent Plant Load Factor (PLF), thus generating 384 MW and supplying power to Andhra Pradesh Discoms continuously. The power plant was awarded allocation of gas last month along with GMR Vemagiri Power Generation Limited (GVPGL), which has already got operational recently. Both the plants are located adjacent to each other near Rajamundry.

The commercial operations at the plant will continue up to March 2016, depending on gas availability and thereafter the Centre is expected to call for a fresh round of bidding. “We are happy to receive the gas under e-bid RLNG Scheme from the Government of India and announce commencement of commercial operation of GMR Rajahmundry Energy Ltd, which will help in rationalizing the power tariff and improve the power supply scenario of the State,” GMR said in a release.

The revenue generated through this will facilitate the GMR Energy Limited to cover O&M expenses and service the interest cost, it added. GREL is a combined cycle power plant with natural gas and generates power using GE’s advanced class technology of gas turbines. As per the new scheme, the government will subsidize the power distribution companies to the extent of Rs 1.44 per unit from the Power Sector Development Fund.

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