The Hindu Business Line : Dabhol project can be restarted within a year, says NTPC chief

Mr C.P.Jain (right), CMD, National Thermal Power Corporation Ltd, and Mr Chandan Roy, Director Operations, at a press conference in Mumbai on Tuesday. — Paul Noronha

Mumbai , Aug. 9

THE now defunct Dabhol power project could be revived within a year of its assets transfer to Ratnagiri Gas and Power Pvt Ltd, a joint venture incorporated last month between National Thermal Power Corporation and GAIL (India).

The revival would restart Phase one of the 2,184-MW project, besides the completion of phase two and regassification facilities, said Mr C.P. Jain, Chairman, NTPC, at a news conference here today.

Apart from this external survey, a detailed study of the plant condition would be carried out with help from General Electric, he said.

Several issues must be taken care of before the plant can become operational, Mr Jain said. Financial institutions will first approach the court for debts owed by Dabhol Power Company.

The assets must be transferred to the special purpose vehicle, Ratnagiri Gas & Power.

The project can be started after gas is made available through GAIL, he said.

NTPC has approved Rs 500 crore equity for the project; GAIL will invest an equal amount.

Four financial institutions will together contribute Rs 500 crore. Power from the Dabhol project will be priced Rs 2.30 per unit, as determined by consultants Rothschild and SBI Caps, Mr Jain said.

Of this, the fixed price would be Rs 1.10 while fuel cost would be contained at Rs 1.20. GAIL is expected to close negotiations at this rate.

Although the power is meant for sale within Maharashtra, there are attempts to declare the unit a mega project to allow sale of 20 per cent of production to other States, an NTPC official said.

NTPC would allocate 2,080 MW to Maharashtrafrom several new power projects that are expected to be commissioned in 2006 and 2007.

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