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PLF of gas-fired power plants likely to decline further: Ind-Ra

The plant load factor (PLF) of gas-based power plants is likely to decline further in FY18 due to continued shortage of gas stretching their finances, according to India Ratings and Research (Ind-Ra). In its report, it highlighted that this expectation is based on the closure of the scheme for the revival of GBPPs (gas based power plants) by way of Government subsidy through power system development fund, higher variable cost of generation than that for coal-based power plants and other alternatives such as availability of lower-cost power on the power exchanges and no improvement in domestic gas production. The Government had announced a subsidy scheme in FY16 to revive GBPPs, leading to PLFs of these plants marginall.....

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