Maharashtra not to purchase power from Dabhol plant

State not to pick up equity in the proposed LNG company

The Bharatiya Janata Party (BJP)-led government in Maharashtra on Thursday said the state was not keen to draw power from the Dabhol power project, citing surplus availability.

State Energy Minister Chandrashekhar Bawankule told Business Standard: “Maharashtra is power surplus without any major loadshedding. Therefore, the state undertaking MahaVitaran will not draw power after power generation is resumed in Dabhol from November. MahaVitaran has already terminated its power purchase agreement (PPA) with Ratnagiri Gas and Power Pvt Ltd (RGPPL) in January and it won’t be revived.”

The minister also said the state was managing the power scenario with MahaGenco’s installed thermal capacity of 11,237 Mw. Of the 11,237 Mw, MahaGenco supplies 5,000 Mw, while 4,500 Mw is procured from the central pool. This apart, MahaVitaran also gets 2,400 Mw from Adani Power, 1,096 Mw from RattanIndia Power, 680 Mw from Lanco and 500 Mw from Koyana hydroelectric power. Moreover, MahaVitaran purchases 100-250 Mw from power exchanges on a short-term basis.

PLUGGING INTO POWER NEEDS

• Of the 11,237-Mw installed thermal capacity, MahaGenco supplies 5,000 Mw, while 4,500 Mw is procured from the central pool
• MahaVitaran also gets 2,400 Mw from Adani Power, 1,096 Mw from RattanIndia Power, 680 Mw from Lanco and 500 Mw from Koyana hydroelectric power
• MahaVitaran purchases 100-250 Mw from power exchanges on a short-term basis

The RGPPL board on Wednesday decided to restart the Dabhol plant. Besides, two separate companies will be formed to independently operate and manage the 1,967-Mw Dabhol plant and five million tonne a year LNG terminal facility.

The government’s move is also crucial as the state distribution utility MahaVitaran was purchasing about 95 per cent of power since the Dabhol project began generation in April 2006. With the latest move, the government indicated that RGPPL would have to scout for new buyers apart from the railways to run at the full generation capacity of 1,967 Mw.

Meanwhile, Bawankule said the government would have no objection RGPPL offering equity to railways. “State undertaking MSEB Holding Company’s 13.51 per cent equity in the RGPPL will remain unchanged. RGPPL will be exempted from transmission payable to the state transmission utility MahaTransco when it starts supplying power to the railways,” he added.

Bawankule said that the state has no plan to acquire stakes in the new company to be formed to manage the 5 million tonne a yer LNG import terminal adjacent to the Dabhol power project.