Dabhol project to resume generation today

Initially 300 Mw to be supplied to the Indian Railways

Ratnagiri Gas & Power Pvt Ltd (RGPPL), better known in its earlier and controversial name of Dabhol Power Company, is to restart generation from Saturday.

It had earlier missed the deadlines of November 1, 9 and 18 for doing so, due to procedural and other issues. RGPPL’s board of directors on September 30 had approved de-merger of the company, into one entity for power generation and the other for running a liquefied natural gas terminal.

The project has been closed since December 28, 2013, for want of gas.  An official at the plant site, who did not want to be identified, told this newspaper: “Against the total generation capacity of 1,967 Mw, (we) will initially produce 300 Mw to supply power to Indian Railways (IR). Another 200 Mw will be generated in due course. RGPPL and IR have entered into a power purchase agreement (PPA) for the proposed drawal of 500 Mw.”

The official said they'd got the needed approval from the Central Electricity Regulatory Commission on the PPA and for restart of generation on gas procured through reverse bidding. The cost of power will be Rs 4.79 a unit.

According to the official, the Maharashtra government has decided to waive transmission charges on the evacuation of power.  The state government had terminated its PPA with RGPPL in early January and it has no plans for its revival.