Synopsis
Stranded gas-based power plants should be able to come out of darkness now, with LNG trading below USD5 per mmbtu. But that’s easier said than done as companies don’t have the capital to put the unused plants back in action, and banks are not lending.
In 2005-2006, when the Indian power sector finally went for what could potentially mollify frowning environmentalists, boardrooms across electricity-producing companies lit up with the possibility of higher margins. Gas-based power plants suddenly became a hot topic of discussion among industry bosses — 50%-60% less carbon emission and nearly half the generation cost compared to coal-fired power units, and a brave projection for domestically
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