Financial Daily from THE HINDU group of publications
Saturday, Jun 18, 2005
Industry & Economy - Power
Dabhol deadlock may be resolved soon
Mumbai , June 17
THE impasse over the locked-out Dabhol Power Project is likely to be resolved soon, as the Maharashtra Government has shown an inclination to buy 2,184 MW of power from it at Rs 2.30 per unit at 80 per cent plant load factor.
The Dabhol Power Project is likely to resume power generation in six months; National Thermal Power Corporation will run the power plant.
The Maharashtra Government announced this on Friday after a specially convened Cabinet meeting.
To carry out the negotiations with the Union Government over the issue, a four-member secretary-level committee has been formed by the Maharashtra Government. The committee is authorised to take all decisions.
The committee consists of the Chief Secretary, the Principal Secretary (Energy), the Additional Chief Secretary (Finance) and the Managing Director of MSEB Holding Company.
Briefing the media after the meeting, the Energy Minister, Maharashtra, Mr Dilip Walse-Patil, said the Centre's efforts to resolve the Dabhol issue were in the final stages. Since the State Government wanted to authorise someone to discuss issues on its behalf, the committee was formed.
"The State Cabinet has given the broad parameters to the committee and, accordingly, the negotiations on price would be undertaken with the Union Government. The committee will also discuss the nature of fuel for the project. The final agreement on the issue could take place within one month," Mr Patil said.
The Minister also said that, for proper functioning of the secretary-level committee, a committee of ministers from energy, industries and agriculture has been formed.
The resumption of power supply from the Dabhol Power Project will bring in immense relief to Maharashtra, which is suffering from load shedding of over 3,000 MW. Due to the power crunch, many investors have opted for the neighbouring States for their projects.
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