MahaVitaran opposes rate revision of Dabhol project

MahaVitaran, the Maharashtra government-promoted electricity distribution company, has opposed a tariff revision of the Dabhol project, saying that such a move would cause it additional financial hardship and prove detrimental to the interest of state consumers.

“The company is not in a position to unilaterally consent to the cost power offered by Ratnagiri Gas & Power Pvt Ltd (RGPPL), especially in the light of the tariff orders passed by the Maharashtra Electricity Regulatory Commission, which regulates the entire power purchase and procurement process,” a MahaVitaran official said.

The Dabhol power plant has seen power generation plunge in recent days on account of dwindling gas supplies.

The plant is getting less than 2.9 million standard cubic metres per day (mscmd) of gas against an allocation of 8.5 mscmd, resulting in a substantial generation loss. The power generation is hovering between 400 Mw and 800 Mw, against the total generation capacity of 1967.08 Mw.

To overcome the short supply, RGPPL, which runs Dabhol, has secured the re-gasified liquefied natural gas (RLNG), an alternative fuel supply agreement. RGPPL has also filed a petition before CERC, seeking its directive for its contract to procure RLNG.

RGPPL has sought revision in normative annual plant availability factor for full fixed cost recovery till the supply of KG-D6 gas is fully restored to the allocated/contracted quantity.

“We have sought the CERC's intervention under Section 79 of the Electricity Act, 2003 as the Dabhol project, being an inter-state generating station, has an arrangement for the sale of power in more than one state. Maharashtra is allotted 95 per cent of its capacity while 5 per cent has been allocated for a period of three months each to Goa, Daman, Dadra and Nagar Haveli,” an RGPPL official said.

However, in its affidavit filed before the CERC, MahaVitaran has argued that the financial impact of granting consent to RGPPL to source fuel from an alternate source would reflect in the land cost of power for 800 MW to it which would amount to Rs 4,792.42 annually.

“Considering full capacity charges, the total cost (KGD6 gas and RLNG) would increase to Rs 6.75 per unit as against the existing Rs 4.28 per unit. The financial impact of relaxing the normative annual plant availability factor for RGPPL to the actual availability would result in an additional burden of Rs 876.30 crore,” MahaVitaran said in its affidavit.

“RGPPL's move to arrange alternate fuel supplies without seeking MahaVitaran's consent is a deliberate breach of the express terms and conditions of the power purchase agreement (PPA). MahaVitaran is entitled to withhold consent for such an alternate fuel arrangement as the tariff impact on the consumers would be unjustifiable and also not in their interest,” the MahaVitaran official added.