Dabhol will be revived: NTPC chief

The plant was mothballed after a billing dispute with Maharashtra and Enron's bankruptcy in 2001

Reiterating that revival of the beleaguered Dabhol was on the cards, NTPC today said all possible options are being explored for the same.

"Dabhol will be revived. How can we afford in a country like ours to leave one project to get killed by itself. Many options are being considered and it has to be revived," NTPC Chairman and Managing Director Arup Roy Choudhury told reporters here.

The Dabhol or Ratnagiri Gas and Power Ltd (RGPPL), is currently not generating electricity.

On asked whether the impending gas pooling mechanism could be a solution, Choudhury said, "It might be."

The plant was originally built by US major Enron Corp. It was mothballed after a billing dispute with Maharashtra and Enron's bankruptcy in 2001. RGPPL took over the plant in September 2005.

The company was set up to takeover and revive the assets of Dabhol Power Company Project.

GAIL and NTPC hold 32.9 per cent each in RGPPL while the Maharashtra government has a 17.4 per cent stake. Lenders IDBI Bank, State Bank of India, ICICI Bank and Canara Bank hold the remaining 16.8 per cent.

The company still awaits greater clarity on the gas price front.

"A lot of clarity is required as far as gas price is concerned, for example at what rate the fixed charges be reimbursed. The problem is electricity that is produced from gas is costlier than electricity produced from coal. As long as that remains the choice, the consumer does not come on gas," he said.

Meanwhile, country's largest power generator NTPC is also executing a 4,000 MW thermal plant in the newly created Telangana.

The company will construct this plant under the Telangana act.

"We are awaiting coal mine reallocation for setting up two 800 MW units at our Ramagundam plant. The other three units will come adjacent to this plant," Choudhury said.