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Dabhol power project slips on restart attempt

Deadline breached as power purchase demand not received from the rail ministry

Sanjay Jog  |  Mumbai 

A project that brought hope and despair to Ratnagiri

The 1,967-Mw power project, which has missed the November 1 restart deadline, is likely to resume production from November 9. Reason: Ratnagiri Gas & Power Pvt Ltd (RGPPL), the owner of the project, has failed to get demand from the railway ministry, which had decided to purchase 500 Mw from

The board, which had met on September 30, had said the operation would be restored on November 1. The board had also approved the de-merger of the company into two — one for power generation and the other for for running LNG terminal.

An officer, who did not want to be named, told Business Standard: “The power generation has not begun from November 1. Even though the have entered into agreement with RGPPL, the former has not yet conveyed schedule and the actual demand for This is necessary for a company to accordingly restart generation and supply power.” He said that a team of is expected to visit the plant on Wednesday and discuss power purchase schedule.

The official said now hopes to restart the generation from November 9 if it gets power purchase schedule from the “The company has already secured 1.98 million metric standard cubic metres per day (MMSCMD) of gas under the power system development fund (PSDF) set up by the government to help power companies buy expensive imported fuel,” he noted.

According to the board decision, the cost of power will be Rs 4.79 per unit,” he said.

However, the official said purchase of 500 MW of power by the Indian Railways is not at all sufficient for RGPPL to break even. "Additional gas and demand commitments from more power purchasing utilities are required to achieve full generation capacity of 1,967 MW and improve cash flows," the officer added.

The government officer said the state cabinet has already taken a decision to waive transmission charges. However, he reiterated that the state was not at all keen to resume purchase of power from project in view of adequate power availability. He also reiterated that the state run had already terminated its power purchase agreement with RGPPL.

First Published: Tue, November 03 2015. 00:41 IST