Dabhol power plant to be revived yet again

Shiv Kumar

Tribune News Service

Mumbai, November 24

The Ratnagiri Gas and Power Plant Ltd (RGPPL) or the Dabhol power plant, originally promoted by the ill-fated Enron Corporation of the US has been revived yet again under a package deal by the state and Central government.

The plant which was shut for the past 23 months will begin selling electricity later this week to the Central Railways, according to state government sources.

The Dabhol power plant will begin generating 300 MW of power which will be sold to the Central Railways for Rs 4.71 per unit. Power will be generated at Rs 6.15 per unit with the Central government paying the difference.

Apart from the subsidy from the Central government, a number of measures have been undertaken to bring down the cost of power from the plant. While the Maharashtra Electricity Regulatory Commission (MERC) has waived transmission charges to keep power from the plant low. The Central Railways has applied for a distribution licence so that it won’t have to pay distribution charges to another utility.

The Maharashtra Government also waived VAT, CST and octroi on power generated from the plant.

Production from RGGPL will gradually be ramped up to its full capacity of 1,967 MW as power purchase agreements are signed with more buyers.

Power production from the Dabhol power plant was suspended two years ago due to shortage of domestic gas.