India to stop development of new gas based plants till 2016

India's power ministry has advised developers to refrain from setting up new gas-based projects till 2015-16 .

This became necessary as no additional domestic gas supply will likely be available for new gas-based plants.

The petroleum ministry has projected that gas supply for the next year will decrease from the current levels by 15.03 mmscmd in 2012-13 and further by 3.42 mmscmd in 2013-14.

The expected gas supply in 2011-12 was 42.67 mmscmd.

In 2012-13, the levels are expected to fall to 27.64 mmscmd and then by another 3 mmscmd to 24.23 mmscmd by 2013-14.

The drastic fall in gas supply levels is likely to adversely affect the power sector.

According to ministry estimates, the total demand for gas from the power sector is expected to touch 102.25 mmscmd by 2013-14. However, the gas availability will only be 24.23 mmscmd.