Paguthan Power Station was developed soon after the Indian government opened the power sector to foreign investment in 1992 and started operation in 1998. CLP acquired the plant in 2002, marking its entry into India. Paguthan has made a significant contribution to power supply in India where demand often exceeds supply. It also has one of the best safety records in the CLP portfolio. Gas supply to Paguthan has been difficult at times due to depleting gas fields and high demand from other users, but the units can run on naphtha as a backup fuel.