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  • India: GMR Energy’s AP gas project starts operations
    21 Nov, 2015

    GMR Rajahmundry Energy Ltd (GREL), a subsidiary of GMR Energy Ltd, has commenced commercial operation of its 2X384MW gas-based combined cycle gas-based power plant in Rajahmundry, Andhra Pradesh.

    The commercial operation of the power plant commenced with supply of gas under e-bid RLNG 'Scheme for utilisation of stranded gas-based power plants', which was launched by the Centre in March 2015. With the current scheduling the plant is expected to run for at least a month.

    With the beginning of e-bid RLNG scheme, the 768 MW power plant can now operate at 50 per cent plant load factor (PLF), thereby generating 384 MW and supplying power to AP discoms continuously.

    The plant will operate with clean fuel thus making power generation environment friendly. GREL is a combined cycle power plant with natural gas and generates power using GE’s advanced class technology of gas turbines (GE Frame 9 FA).

    Current operations will continue up to March 2016, depending on the gas availability and thereafter the Centre is expected to call for a fresh round of bidding in March 2016.

    Allocation of gas was made to the power plant last month along with GMR Vemagiri Power Generation Ltd (GVPGL), which has already got operational recently. Both the plants are located adjacent to each other.

    In a statement, a GREL spokesperson said: “We are happy to receive the gas under e-bid RLNG scheme from the Government and announce commencement of commercial operation of GMR Rajahmundry Energy Ltd, which will help in rationalising the power tariff and improve the power supply scenario of the State. The revenue generated through this will facilitate GMR Energy Ltd to cover O&M expenses and service the interest cost.”

    As per the scheme, the government will subsidise the power distribution companies to the extent of Rs. 1.44 per unit from the Power Sector Development Fund.

    GMR Vemagiri Power Generation Ltd and GMR Rajahmundry Energy Ltd — with a combined capacity of 1,156 MW will be supplied with imported natural gas through the Government's reverse auction process of 'Scheme for utilisation of stranded gas-based power plants' GMR Energy has already secured coal security for all its coal-based assets worth 3,000 MW.

    Source: The Hindu BusinessLine

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