Dabhol power for Maharashtra at less than Rs 3 per unit  

Dabhol power is set to help the power-starved Maharashtra. The state, facing a huge power shortage of 4,000 mw with the onset of summer, will get 1,400 mw from March at less than Rs 3 per unit. Ministry of power secretary RV Shahi told ET that a financial engineering involving deferment of depreciation and lowering of rate of return from the allowed 14% have helped the project?s promoter Ratnagiri Gas & Power (RGPPL) bring down the tariff to affordable levels.

The plant will change its fuel from the expensive naphtha to liquefied natural gas (LNG) from March, which will be supplied by Petronet LNG at a competitive cost of $4.92 per mBtu (million British thermal unit). Mr Shahi said Maharashtra?s demand of Rs 2.30 per unit was not feasible at all. Sources said RGPPL has tied up LNG supply for Dabhol for two years, but details of the source and cost were not available. Mr Shahi said promoters, lenders and the state will take a minor ?hit? to help the consumers.  

Source: The Economic Times, Mumbai
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