Fiscal Implications and Macroeconomic Impact Analysis of the Gas Price Pooling Policy of the Government of India

The NCAER Gas Price Pooling Study captures the macroeconomic impact of the increased power generation and its multiplier effects as a result of greater availability of gas, as well as the total costs of such a policy in the form of subsidies and revenue losses to other sectors. The net benefits are analysed under different scenarios, including plants operating at 30% PLF, 40% PLF and 50% PLF, and with and without the availability of domestic gas supplies.