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Summary Per unit production cost of electricity will jump to Rs 22 with use of diesel as fuel in plants.
According to sources, an accord to supply gas to four thermal power plants terminates next month. Orient, Saif, Safair and Hilmore power plants are producing 875 megawatts of electricity. A five-year agreement was inked in 2007 to ensure gas supply to these plants which is going to end on June 30. The sources said that these plants would use diesel if the gas supply agreement was not renewed. Use of diesel as fuel will cause a jump in cost and per unit production cost of electricity will reach Rs 22.
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