Revival of gas-based power capacity may save USD 16 bn worth of investments for India: Moody’s

March 30, 2015

The government’s latest plan to revive the stranded gas-based power generation capacity through imports will help save $16 billion worth of investments and banks including IDBI, State Bank of India (SBI) and ICICI are set to be the biggest beneficiaries of the plan, credit rating agency Moody’s said in its latest Credit Outlook report.

Power plants using Regasified liquefied natural gas (RLNG) as fuel have been facing significant availability and pricing challenges because the domestic production of LNG has been significantly lower than the assumptions made when the plants were set up. At the same time, importing LNG at prevailing prices has proved difficult because it increased generation costs raising prices beyond the reach of buyers.