M'rashtra ready to buy power at Rs 3.30 per unit

The 'power' hungry Maharashtra has climbed down from its previous stand against buying Dabhol power for anything above Rs 3 per unit, and has agreed to pay around Rs 3.30 per unit.

The power purchase agreement (PPA) is likely to be signed between the state-owned power utility, MSEDCL, and owners of the Dabhol power plant, Ratnagiri Gas and Power Pvt Ltd (RGPPL).

Maharashtra, which is facing a huge power shortage of 5,700 Mw will not get any respite despite signing the PPA as RGPPL plant is unlikely to get synchronised before June.

A meeting to review the progress of Dabhol project was called by Chief Minister Vilasrao Deshmukh which was attended by state energy secretary B P Pandey, MSEDCL managing director A B P Pandey, RGPPL CMD Chandan Roy and GAIL senior officials.

On the vexed issue of fixed and final cost of Dabhol power, Deshmukh showed willingness to be flexible and extend all cooperation to help the Dabhol plant go full steam.

It was reliably learnt that the state government agreed to the RGPPL's proposal of pegging fixed cost at Rs 1.06 paisa per unit instead of 96 paisa per unit as demanded by the government and final cost of power around Rs 3.30.

However, officially it was decided to leave the decision on the contentious issue to the empowered group of ministers, headed by external affairs minister Pranab Mukherjee.

According to sources close to the development, RGPPL has reached an agreement on supply of gas with Petro Net. As per the agreement, the latter will supply 1.8 million tonne gas annually for the next two years to run RGPPL's two plants of 700 Mw each.

Though officials in the state energy ministry are expressing confidence that the pipeline between Uran and Dabhol will be completed by the end of March, it is reliably learnt that it will not be completed before the end of May.

At the today's meeting, the chief minister assured RGPPL of a loan of Rs 450 crore to make the plant operational.

The state government will recover the loan over the next two years by setting against the power bill payable to RGPPL.