Maharashtra to buy power from Dabhol

The beleaguered Dabhol power plant will be restarted by the middle of November after a gap of more than four months with the Maharashtra government today agreeing to buy electricity at Rs 5.01 per unit in view of the massive power shortage in the state.

The joint venture owner of the Dabhol project, Ratnagiri Power and Gas Ltd (RPGL), and Maharashtra State Electricity Distribution Company will sign an agreement by tomorrow.

The two sides informed Central Electricity Regulatory Commission (CERC) today that Maharashtra will buy up to 700 MW of power from Block-II of the plant, which will be run on imported naphtha. The total cost of power will be Rs 5.01 per unit, which includes Rs 4.71 as capacity charges and Rs 0.30 as incidental charges.

The agreement would include a mechanism for fuel price escalation. In case naphtha price increases in global markets, the additional cost would be passed through and the state will buy power even if the tariff crosses Rs 5.50 per unit.

RPGL officials told CERC that Indian Oil Corporation (IOC) will import naphtha within ?four weeks? and Block-II, which was shut down in July after being operational for two months during May-June, would generate electricity from the middle of next month till March-end 2007.

IndianOil would have to import 3,80,000 tons of naphtha for RGPPL to operate the 740 MW Block-II for five months till March next year. However, as there is lack of adequate storage facility at the project site, IOC may import only 60,000 tons in the first tranche.

Source: The Stateman, New Delhi
                        Petronet LNG Stock Quotes                                    
©Petronet LNG Limited                                                            Home | Contact Us | Disclaimer | Quick Links | Mail Server |