iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Torrent Power, Lanco named as lowest bidders in gas-fired power auction

22 Feb 2024 , 11:01 AM

India’s Torrent Power and Lanco Group were among the lowest bidders in an auction for natural gas-fired power during periods of particularly high electrical demand.

India relies on coal to generate around three-quarters of its electricity, and coal power is often significantly cheaper than gas-fired power plants. Over half of the country’s approximately 25 gigawatts (GW) of gas-fired capacity is not operational.

However, worries of power shortages during Prime Minister Narendra Modi’s election campaign this year have prompted the world’s fifth-largest economy to switch to gas-fired electricity.

The Central power Authority predicts that India’s daily power demand would reach a record 256.5 gigawatts (GW) in September 2024, up from 243 GW in September last year.

A subsidiary of state-run generator NTPC Ltd filed a contract in January for 4,000 megawatts (MW) of gas-fired electricity, but only 1,307 MW were bid on, according to a document from the company’s power trading affiliate, NTPC Vidyut Vyapar Nigam (NVVM).

According to the document, Torrent Power’s DGEN Power plant in the western state of Gujarat proposed to deliver 770 MW of power for 5.63 rupees ($0.0679) per kilowatt-hour (kWh) on Tuesday, while Lanco’s gas-fired facility offered to supply 355 MW at 7.02 rupees per kWh.

Two smaller facilities in the northern state of Uttarakhand promised to deliver a total of 182 MW for an average of more than 7 rupees per kilowatt hour. The firms placed the lowest bids in an online auction, but the contracts are yet to be awarded.

At around 10.09 AM, Torrent Power was trading 0.80% higher at ₹1,133.75 per piece, against the previous close of ₹1,124.70 on NSE. The counter rose to an intraday high of ₹1,146.30.

For feedback and suggestions, write to us at editorial@iifl.com

explored-media

Related Tags

  • Lanco
  • Torrent Power
  • Torrent Power Bid
  • Torrent Power News
  • Torrent Power Updates
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.