Dabhol project shut due to lack of gas supply

Ratnagiri Gas and Power Pvt Ltd (RGPPL), which operates the 1,967-megawatt (Mw) Dabhol project in Maharashtra, is forced to shut down operations since February 21 due to lack of availability of gas.

The company was expecting gas supply from Reliance Industries Ltd (RIL)'s KG-D6 block off the Andhra coast and state-run Oil and Natural Gas Corp (ONGC) from February, but supply did not start. The company is considering operating plant twice a day depending on the gas availability. Power generation will depend on the actual gas supply.

To operate the plant at its full capacity, RGPPL has been allocated 8.5 million standard cubic metre per day (mscmd) of gas--7.6 mscmd from RIL and the rest from ONGC through GAIL India at $4.20 million British thermal unit (mmBtu).

However, the company has been receiving much less quantity during 2011-12 and the current financial year. The closure of the plant coincided with the finance minister P Chidambaram's announcement that the liquefied natural gas terminal at the project will be fully operational during 2013-14.

"Till date, there has been a generation loss of 8,387 million units (MUs), while the loss in rupee terms will be about Rs 3,000 crore during 2012-13. The project received an average 2.67 mscmd of gas. Last fiscal, 3,095 MUs of generation was lost as the company received an average 6.3 mscmd of gas. The loss will be of the order of Rs 1,150 crore," an RGPPL official told Business Standard.

The project was shut on January 26, but opened on January 28 to generate 250 Mw after the receipt of 2.3 mscmd gas. From then to February 20, the plant was closed several times and from February 21, it stays shut.