Lanco has secured gas under the pooling mechanism for 1 October to 31 March 2016 to supply power at Rs.4.70 per kilowatt hour (kWh) and at 50% plant load factor (PLF), a measure of capacity utilization.

“The realization per unit including the power system development fund subsidy will be Rs.6.14 per kWh,” Lanco said in a statement.

Lanco Kondapalli has a total operational capacity of 734MW, which it is currently operating at 35% PLF.

“Now, we have been allocated gas through a fresh round of e-bidding conducted by the government, helping the company to operate at 50% PLF starting October to 31 March,” said T. Adibabu, chief operating officer, finance, at Lanco Group.

As part of the government’s bailout for stranded gas-based power projects, liquified natural gas (LNG) will be imported and supplied to them and cash-strapped state power distribution companies will be financially supported to buy electricity from them.

These projects were shortlisted in the so-called reverse e-bidding process for supply of electricity to distribution companies, conducted by state-owned MSTC Ltd.

Of India’s gas-fuelled capacity of 24,150MW, projects totalling 14,305MW have no domestic gas supply and are considered stranded.

Lanco on Friday also said its Chhattisgarh-based subsidiary Lanco Amarkantak Power Ltd (LAPL) has secured a favourable order from the Supreme Court directing South Eastern Coalfields Ltd to supply coal to the 300MW Lanco Amarkantak unit II.

LAPL has an operational capacity of 600 MW. Unit II has not been operational for the past 30 months due to non-availability of coal.

“With the Supreme Court order, we will be able to start the project,” Adibabu said.