Fall in natural gas production to affect new gas based power project

The Central Electricity Authority (CEA) has said no new gas-based power plants will be set up in the country till 2015-16, as the natural gas output is expected to fall considerably.

The CEA in a letter to states indicated that as per Ministry of Petroleum and Natural Gas reports India's natural gas production is likely to fall by 35 per cent to 27.64 million metric standard cubic metre per day (mmscmd) in the next fiscal and may further dip by another 12 per cent to 24.22 mmscmd in 2013-14.

The power producers woes may worsen across the country as some of the plants are ready but sitting idle due to non-availability of gas.

A Power Ministry official, who confirmed the letter to states, said the embargo may not have any impact on the 12th Five-Year Plan (2012-17) capacity additions as it was only little above 1000 mw that was targeted for gas-based power.