Government Initiatives to Boost Gas-Based Power Generation

11 Mar 2025 CW Team

Key Policy Interventions Open General License (OGL) for LNG Imports

Liquefied Natural Gas (LNG) has been placed under the Open General License (OGL) category. Power plants can now import LNG on mutually agreed commercial terms with suppliers, ensuring flexibility and competitive pricing. During April 2024 – January 2025, power plants in India imported approximately 9.58 MMSCMD of natural gas. Competitive Power Procurement During Peak Demand

The government has periodically launched schemes to facilitate competitive procurement of power from gas-based plants, ensuring grid stability during peak demand periods. Expanding Natural Gas Infrastructure To increase the share of natural gas in India's energy mix, the government has undertaken several infrastructure and policy initiatives, including:

Expansion of the National Gas Grid Pipeline to enhance connectivity. Expansion of the City Gas Distribution (CGD) network to increase access to natural gas. Development of Liquefied Natural Gas (LNG) terminals to support growing demand. Prioritised allocation of domestic gas to CNG (Transport) and PNG (Domestic) sectors. Marketing and pricing freedom (with a ceiling price) for gas from high-pressure, deep-water, and ultra-deep-water reserves. Promotion of Bio-CNG under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative. Government’s Commitment to a Cleaner Energy Mix The Minister of State for Petroleum and Natural Gas, Shri Suresh Gopi, provided this update in a written reply in the Rajya Sabha, reinforcing the government’s focus on enhancing gas-based power generation as part of India’s energy transition strategy.

The Government of India is actively promoting gas-based power generation to improve energy efficiency and sustainability. Currently, gas-based power plants operate at a low Plant Load Factor (PLF), affecting their viability. To address this, the government has introduced policy measures aimed at increasing the availability and affordability of natural gas for power generation. Key Policy Interventions Open General License (OGL) for LNG Imports Liquefied Natural Gas (LNG) has been placed under the Open General License (OGL) category. Power plants can now import LNG on mutually agreed commercial terms with suppliers, ensuring flexibility and competitive pricing. During April 2024 – January 2025, power plants in India imported approximately 9.58 MMSCMD of natural gas. Competitive Power Procurement During Peak Demand The government has periodically launched schemes to facilitate competitive procurement of power from gas-based plants, ensuring grid stability during peak demand periods. Expanding Natural Gas Infrastructure To increase the share of natural gas in India's energy mix, the government has undertaken several infrastructure and policy initiatives, including: Expansion of the National Gas Grid Pipeline to enhance connectivity. Expansion of the City Gas Distribution (CGD) network to increase access to natural gas. Development of Liquefied Natural Gas (LNG) terminals to support growing demand. Prioritised allocation of domestic gas to CNG (Transport) and PNG (Domestic) sectors. Marketing and pricing freedom (with a ceiling price) for gas from high-pressure, deep-water, and ultra-deep-water reserves. Promotion of Bio-CNG under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative. Government’s Commitment to a Cleaner Energy Mix The Minister of State for Petroleum and Natural Gas, Shri Suresh Gopi, provided this update in a written reply in the Rajya Sabha, reinforcing the government’s focus on enhancing gas-based power generation as part of India’s energy transition strategy.

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