To consider the gas price pooling mechanism, Power Ministry is planning to approach Prime Minister Manmohan Singh-headed Cabinet Committee on Investments (CCI). The move is likely to prevent gas-starved power capacities becoming non-performing assets (NPAs). The ministry is also looking to take up the matter with the Cabinet panel as early as end-April.
The draft note for consultations with stakeholders would be floated shortly. The Power Ministry would take to CCI the availability versus demand for gas, current arrangements in the supply and implications of pooling for the economy and individual power producers.
At present, 33 mmscmd of domestic natural gas is supplied to the power sector. Of this, 23 mmscmd is supplied to power plants linked to the grid and another 10 mmscmd to off-grid plants. However, the Power Ministry won’t take up the pooling mechanism as a long-term mechanism. The proposals would cover 2013-14, 2014-15 and 2015-16. Further, the government is also looking to revive the proposal as additional infrastructure to import 21 mmscmd more of natural gas, is expected to be added in 2013-14.
