He said that gas fired power plants make up about a quarter of the installed generation capacity in the country, therefore immediate intervention is necessary to save the gas power plants which may be switched off completely due to commercially unviable power cost.
It may be added that CEA has raised the issue of natural gas pricing in Dollar which will also affect Discoms as power plants pay in Rupees while due to Dollar prices of gas they are susceptible to foreign exchange fluctuations and consequently fluctuations in power tariff.
Dubey alleged that the arbitration notice of Reliance is a as blackmail tactic just before taking over of new Government and will give Reliance additional benefit of Rs. 50000 crore per year while power tariff will go up by Rs. 02.00 to Rs. 2.50 per unit.
He further alleged that RIL deliberately did not supply sufficient gas to power plants in 2013-14 due to which about 21000 mega watt capacities of gas plants suffered but instead of levying penalty Government has doubled the gas prices.