Gujarat Energy minister Saurabh Patel on Friday alleged that due to the "discrimination in gas allocation policy of the UPA government", the gas-based power plants set up with an investment of Rs 20,000 crore in various parts of the Gujarat were currently not in operation.
"Gas-based power plants with total installed capacity of 5,000 MW set up in the state, have been shut down due to the Centre's discriminatory policy on gas allocation," Patel told PTI after a function in Gujarat.
"The Centre has discriminated against Gujarat by allocating it only 3.55 MMSCMD (Million Metric Standard Cubic Meters) gas per day in 2011-12 as against the total requirement of 5.83 MMSCMD per day for all gas-based power generation units in the state.
"Due to this, the state exchequer incurred a loss to the tune of Rs 340 crore in the past two years because of non-allocation of required gas by the Centre," he said.
He claimed that it forced Gujarat to purchase gas at a much higher price from other sources, which has made it difficult for the government to sustain certain power plants, Patel said adding it is an "injustice to Gujarat".
"But the Union government has been allocating gas to Dabhol power plant in Maharashtra treating it as a top priority sector and not as in power sector...This clearly is a case of discrimination and Gujarat has to pay higher price for gas (for buying from other sources) which increases energy generation cost," Patel alleged.