Date:02/03/2007 URL: http://www.thehindubusinessline.com/2007/03/02/stories/2007030202350200.htm

Back Maharashtra may pay Rs 3.30/unit for Dabhol power

Rahul Wadke

New PPA soon with Ratnagiri Gas

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Mumbai March 1 A new power purchase agreement (PPA) between the Maharashtra Government and Ratnagiri Gas and Power Private Ltd (RGPPL) for Dabhol power plant is likely to be signed in the next 15 days.

The Government may purchase power at Rs 3.30 per unit from RGPPL, officials in the Maharashtra Government said.

About 1,400 MW power is expected to be supplied by the Dabhol plant by June. LNG tie-up of 1.8 million tonnes per annum from Petronet LNG Ltd is already in place. The State Government has committed a sum of Rs 450 crore to RGPPL, which would be used for repair and maintenance of the plant. The advance sum would be adjusted by RGPPL against power purchased by the state utility, officials said.

The decision for purchasing power at new rates was taken at a meeting between the Chief Minister, Mr Vilasrao Deshmukh, and officials of RGPPL on Thursday.

Per unit cost of power from the LNG-fuelled plant would be cheaper by Rs 1.50. Under the current short-term arrangement, which is valid till March 31, the plant is running on expensive naphtha. The state distribution company is buying 700 MW of power from Ratnagiri Gas at Rs 5.01 per unit. However, due to technical problems in one of the turbine since January, the plant is only supplying 340 MW to the State grid.

The LNG for the plant would be fed from the upcoming GAIL (India)'s Dahej-Dabhol pipeline. The pipeline has been facing opposition from farmers of Thane district, as they are demanding higher compensation for laying the pipeline through their land. The State Government has pledged full support for the pipeline.

The Chief Minster, in a statement, said that officials of RGPPL have been asked to rectify the technical lacunas in the PPA so that it could be signed at the earliest. The pipeline work is almost complete and by December 2007, Maharashtra would get 2,100 MW of power, the statement said.

The statement also added that GAIL has informed the Chief Minster that by end of May the Dahej-Uran and Uran-Panvel section of the pipeline would be completed.