Bengaluru

Power generation in Karnataka may face disruptions due to reduced natural gas supply after the Centre prioritised other sectors amid a nationwide shortage triggered by the ongoing West Asia conflict between Israel and Iran.

According to a press release, the Government of India issued a gazette notification prioritising natural gas allocation as supplies of Liquefied Petroleum Gas (LPG) have been disrupted across the country due to the conflict.

Under the notification, domestic consumption has been placed at the top of the priority list, followed by sectors such as transport and fertilisers, while power generation has been placed at the lowest priority.

Gas Authority of India Limited (GAIL) has completely stopped gas supply to the Yelahanka Gas-Based Power Plant from 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. 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 unit, which was set up primarily to supply electricity to Bengaluru, has been operating continuously since December last year.

However, the ongoing natural gas shortage linked to the West Asia conflict may affect power production at the plant.

Karnataka’s daily electricity demand currently stands at around 355 million units, which is being met through a mix of thermal and hydel power plants, solar and wind energy, and power 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, lists priority sectors for natural gas allocation to manage the current LPG shortage.

Domestic piped natural gas (PNG), LPG production, compressed natural gas (CNG) used for transport and essential pipeline operations have been given top priority and will receive 100 per cent of their average gas consumption over the past six months.

Fertiliser plants fall under 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, have been placed in the third priority category, while city gas distribution companies supplying industrial and commercial users fall under the fourth category.

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