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No salvation in sight for gas-based power plants – India Ratings

India Ratings, a Fitch company, said it sees no chance for a revival in the fortunes of natural gas-based power generation plants in India. The country saw the setting up of several such plants, especially in Andhra Pradesh, at the turn of the century on expectations of a gas boom from the Krishna Godavari basin in the Bay of Bengal. However, the KG D6 block — which was supposed to produce at 80-100 MMSCMD — effectively doubling the production of the fuel in India — has seen output fall to single digits due to various reasons. This has created a belt of ‘stranded’ gas plants in Andhra Pradesh which are too far in land to be serviced easily by ships. Utilization levels at private plants have fallen to 14.4% last year .....

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