Dabhol plant switches off as fuel runs out, demand lags

MUMBAI: Lower demand for electricity during the monsoon and a lack of naphtha stock at the Dabhol power plant, which is now operated by Ratnagiri Gas and Power, has led to the closure of the plant. The plant is expected to restart production by the end of August, according to power ministry officials.

Sources said that Maharashtra State Electricity Board (MSEB) had earlier informed Dabhol officials that the requirement would come down after June 30. They also confirmed that the stock of naphtha was over at the site. “There is no point in stocking naphtha if there is no need to produce electricity. Naphtha is very costly in the market and the company has to keep it idle for the next 2-3 months,” they said.

Officials confirmed that the shutdown was due to an expected dip in power demand during the June-September monsoon season and not because of lack of naphtha supply. The $2.9-bn project, built by Enron, began to generate power in May after being mothballed for nearly five years, following a billing dispute with its sole customer, MSEB. The plant has a monthly requirement of 85,000 metric tonne of naphtha to produce 700 mega watt.

When the phase I of the plant (744MW) was shut down in May ‘01, it was being fuelled by naphtha, while the second phase of 1,440MW was nearing completion.

Ratnagiri Gas and Power, which is owned by state-run gas transmission firm GAIL India and National Thermal Power Corporation (NTPC), is talking to Indian Oil (IOC) for supplies of naphtha, while talks are currently on to bring in LNG to fire the plant once the second phase is completed.