Bengaluru

Power generation in Karnataka may be disrupted due to reduced natural gas supply following the Centre’s decision to prioritise other sectors amid nationwide shortages caused by the West Asia conflict involving Israel and Iran, according to a press release.

With supplies of Liquefied Petroleum Gas (LPG) affected across the country due to the conflict, the Government of India on Tuesday issued a gazette notification prioritising natural gas allocation. Domestic consumption has been placed at the top of the list, followed by sectors such as transport and fertiliser, while power generation has been assigned the lowest priority.

Gas Authority of India Limited (GAIL) has completely stopped gas supply to the Yelahanka Gas-Based Power Plant since 6:00 am on March 12.

The 370 MW plant, set up by Karnataka Power Corporation Limited (KPCL), is the state’s only gas-based power generation facility, and any disruption in gas supply could affect its output.

To ensure uninterrupted electricity supply during peak demand, the state government has been generating power from all available sources. The Yelahanka gas-based unit, primarily meant to supply electricity to Bengaluru, has been operating continuously since December last year. However, the natural gas shortage triggered by the West Asia conflict may affect power production at the plant.

Karnataka’s daily electricity demand currently stands at around 355 million units. The demand is being met through a mix of thermal and hydel power plants, solar and wind energy, and electricity drawn from the central grid.

The state is also meeting part of its demand through power exchange arrangements with Punjab, Uttar Pradesh and Haryana. However, further curtailment of gas supply to the Yelahanka plant could lead to minor disruptions in electricity supply.

The Centre’s notification, issued under the Essential Commodities Act, 1955 through the Natural Gas (Supply Regulation) Order, 2026, outlines priority sectors for natural gas allocation to address the current LPG shortage.

Top priority has been given to domestic piped natural gas (PNG), LPG production, compressed natural gas (CNG) used for transport and essential pipeline operations, which must receive 100 per cent of their average gas consumption over the past six months.

Fertiliser plants have been placed in the second priority category and will receive around 70 per cent of their average gas consumption during the same period.

Industrial and commercial consumers, including tea manufacturers, fall under the third priority category, while city gas distribution companies supplying gas to industrial and commercial users have been placed in the fourth category. These sectors will receive 80 per cent of their average gas consumption over the past six months.

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Since power generation has been placed in the lowest priority category, gas supply to the sector is likely to remain restricted until the natural gas shortage eases.