Gas price hike fruitful if discoms buy costlier power: NTPC's Arup Roy Choudhury
With the government announcing increase in the price of domestically produced gas, state-run NTPC said the move will prove beneficial only if the power distribution companies buy the electricity produced from the plants consuming the costlier fuel. "I hope with this the gas producers will increase production but ultimately it will work when schedule is given by discoms for this (costlier) power," NTPC Chairman Arup Roy Choudhury said. He said there will be no impact of gas price increase on NTPC's gas-based plants as they have long term PPAs or power purchase agreements in place.
"No plant is there that is affected other than Ratnagiri," Choudhury said. The company's Ratnagiri plant gets gas from Reliance Industries' KG-D6 oil fields. On the coal block auction, he said, "We have no problem with the auction and whatever increase is there in price due to the auction, it will be passed on to the consumer, the mines that I have are likely to produce 1.25 million tonnes of fuel."