Gujarat Industries Power Company temporarily stops operation of 145 MW gas power plant at Vadodara

Gujarat Industries Power Company Limited has 145 MW Combined Cycle Power Plant, Gas Based Station-I situated at Vadodara which uses Natural Gasas its Fuel for generation of power.

It has been observed that the Natural Gas Price has been showing increasing trend since middle of the current Financial Year and even more predominantly since February, 2022, with beginning of issues (including war) between Russia and Ukraine. The same is impacting the gas availability / feasibility for running operations of the subject Station-l.

Due to the aforesaid reasons, the power generation from this plant and the operations have been affected. The plant is non-operational and may resume operations once the gas prices are back to normal levels.

The Company is making all possible efforts for sourcing cheaper gas to make the plant operational, however looking to the present global situation on gas prices, overall demand - supply scenario as well as the Government priorities for allocation of domestic gas, there seems less likelihood of resumption of power generation from the subject plant in near future.

In view of above it is anticipated that total revenue for the FY 2021-22 may be impacted by Rs.150 crores as compared to the total revenue for FY-2020-21and the revenue may be reduced further by around RS.75crores per quarter from FY2022-23 till the Plant resumes normal Operations.

Shares of Gujarat Industries Power Company Limited was last trading in BSE at Rs. 76.95 as compared to the previous close of Rs. 77.90. The total number of shares traded during the day was 86681 in over 658 trades.

The stock hit an intraday high of Rs. 78.75 and intraday low of 76.70. The net turnover during the day was Rs. 6744802.00.

Source : Equity Bulls

Keywords

GujaratIndustriesPowerCompany INE162A01010 GasBased PowerPlant Vadodara