New gas policy may prefer new plants to expansion
New Delhi, June 28 (PTI)The government is believed to be in the final stages of formulating a gas allocation policy, which is likely to give preference to new power plants over expansion projects.
“The (gas linkage) policy may be broadly based on the coal linkage policy,” a power ministry official said.
As per the coal linkage policy, first priority is accorded to power projects of the central sector PSUs like NTPC, state sector utilities like APGENCO (Andhra Pradesh Generation Company) and projects to be bid out by states on tariff based competitive bidding, followed by independent power projects (IPPs) and captive power plants.
In the new policy, which is likely to be called the Gas Linkage Policy, the government is mulling the option of giving preference in allotment to greenfield (new) power projects over brownfield (expansion).