India govt to launch major smart city and gas power plant policy reforms

By Editor


India government is targeting a major smart city development mission as well policy revival for large-scale gas power plants in the month of April.

Smart cities will be developed in terms of the scope, reach, impact and the implications, stated, M. Venkaiah Naidu, union minister for Urban Development, Housing and Poverty Alleviation.

Under the smart city plan, the center will focus on the basic amenities and infrastructure, apart from providing efficient governance and service systems.

According to the minister, the center is committed to provide a better standard of living to the people.

By the year 2045, it is estimated that around 500 million people will be added to the existing urban populations.

In another initiative to provide 24×7 power to all, the government is planning policy involvement to revive about 14,000 MW of gas-based power plants.

The government is considering pooling of domestic gas with the imported re-gasified liquefied natural gas (RLNG) in order to make the stranded power plants generate power.

This policy intervention aims at adding an additional 75 billion units of power, which will produce Rs 40,000 crore, and at the same time revive stressed assets worth over Rs 60,000 crore, which are on the verge of turning into non-performing assets.

In addition, the government is also evaluating, intervention in the nature of sacrifices being made collectively by all stakeholders, including the central and state governments, the gas transporters, and even the plant developers who will completely forgo their return on equity.

In order to keep power tariff at affordable rates, the government is considering giving support to discoms through the Power System Development Fund (PSDF), which is aimed at grid stability and security.

With the revival of the stranded gas-based generating capacity, the total electricity generation in the country can be enhanced and have a multiplier effect for both banking sector as well as power sector.

Sabeena Wahid
[email protected]

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