The Godbole Committee has valued the LNG regassification facility of the Dabhol Power Company (DPC) at Rs 2,850 crore. It had recommended that the facility be hived off into a separate entity and sold to the public sector Gas Authority of India Ltd or any other private sector company.
The committee has also recommended that LNG suppliers take a hit of Rs 4,226 crore as a result of the bail-out package for DPC.
The regassification facility of DPC is for five million tonne of LNG per annum, whereas the power plant has contracted for only 2.1 million tonne (of which 1.8 million tonne is take or pay) and even that requires an unreasonably high plant-load factor.
The committee had opined that as a separate facility, it could enter into transactions with other buyers of gas as well.
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