India-based GMR Infrastructure’s subsidiary GMR Energy has been allocated gas for its two power plants, which will help the company to boost power generation.

The two plants are GMR Vemagiri Power Generation and GMR Rajahmundry Energy in the southern state of Andhra Pradesh.

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A GMR Energy spokesperson said: "We are happy to receive gas, which will help rationalise the power tariff and improve the power supply scenario of the state."

The government conducted a second round of e-bidding on 15 September, in order to allocate gas to the plants of GMR.

"We are happy to receive gas, which will help rationalise the power tariff and improve the power supply scenario of the state."

In March, the union government launched a scheme for using stranded gas-based power plants by holding rounds of bidding.

Under the scheme, the government provides subsidies to companies from the power system development fund (PSDF) through an e-bidding process.

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GMR Energy stated: "These two plants, with total capacity of 1,138MW, now can operate over the next six months starting October, 2015 at equivalent to 50% plant load factor (PLF), up from 25% PLF in the previous round."

The present allocation of gas will allow the operation of power plants to continue until next March, when the government intends to call another round of bidding.

The government will subsidise power distribution companies to the extent of Rs1.44 per unit from the PSDF for the power procured from these two plants, the company stated.

GMR Energy has about 3,000MW of coal-based power plants and 1,350MW of gas-based plants, in addition to operating a 25MW solar plant. It is also developing hydro assets of about 2,000MW.