Adding to the LPG cylinder crisis, Bengaluru is now set to face disruption of power supply as the Gas Authority of India Limited (GAIL) has completely stopped gas supply to the Yelahanka gas-based power plant in the city. The Energy Ministry confirmed on Thursday that the supply cut will be applicable from March 12. The 370 megawatt Yelahanka 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, the ministry stated.
The Yelahanka gas-based unit, which was set up primarily to supply electricity to Bengaluru, has been operating continuously since December last year. However, the natural gas shortage triggered by the West Asia conflict is now set to affect power production at the plant. The officials further stated, power generation in Karnataka may be disrupted due to reduced natural gas supply, following the Central government’s decision to prioritise other sectors amid nationwide shortages caused by the West Asia Israel-Iran conflict.
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With LPG supplies across the country disrupted due to the West Asia conflict, the Centre on Tuesday issued a gazette notification under the Natural Gas (Supply Regulation) Order, 2026, prioritising natural gas allocation, placing domestic consumption at the top of the list. While sectors such as transport and fertiliser have been given the next level of priority, while power generation has been placed at the lowest priority.
Why Gas Shortage Can Affect Electricity Supply
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 power supply, the officials said.
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While there is no detailed information from official authorities on how the shutdown of Yelahanka will lead to scarcity in electricity. But many reports said that the state officials warned that stopping the gas could restrict the electricity supply until and unless the alternative sources can fully cover the shortfall. They are expecting minor disruption. This plant has been running since December 2025 to meet Karnataka’s electricity demand.
New Gas Allocation Rules Prioritise Other Sectors
Invoking powers under the Natural Gas (Supply Regulation) Order, 2026 issued under the Essential Commodities Act, 1955, the Centre has notified priority sectors for the allocation of natural gas to address the current LPG shortage.
Top priority has been given to domestic Piped Natural Gas (PNG), LPG production, CNG used for transport, and essential pipeline operations, which must receive 100 per cent of their average gas consumption over the past six months.
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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 priority category. These sectors will receive 80 per cent of their average gas consumption over the past six months.
Since power generation has been placed in the lowest priority category, gas supply to this sector is likely to remain restricted until the natural gas shortage eases.
