Dabhol power to cost Maharashtra Rs 6.50 per unit
Ratnagiri Gas and Power Pvt Ltd, the new owner of Dabhol power plant, will restart generation in October after a three-month gap, but the cost of power will jump to about Rs 6.50 per unit from Rs 4.25 earlier.
By PTI |
NEW DELHI: Ratnagiri Gas and Power Pvt Ltd, the new owner of Dabhol power plant, will restart generation in October after a three-month gap, but the cost of power will jump to about Rs 6.50 per unit from Rs 4.25 earlier.
"The generation would start with naphtha and will cost about Rs 6.50 per unit... let's hope once the plant switches to LNG, the cost will come down," Power Minister Sushilkumar Shinde told reporters.
Asked if the Maharashtra government was willing to buy electricity at this rate, he said, "They want power from October. This means they are willing to pay."
While giving the example of Pune, Power Secretary R V Shahi said, even this rate would be acceptable in the wake of many cities in the state willing to buy "uninterrupted" power from captive producers at a rate of Rs 10 per unit.
Shinde said the 740 MW Block-II of the plant would again be operated on naphtha as natural gas supplies were expected to be firmed up only in March next year.
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Shahi said RGPPL would import naphtha for resuming generation through Indian Oil Corporation.Running the plant on imported naphtha would increase the cost of generation to about Rs 6.20-6.50 per unit compared to Rs 4.25 per unit when the plant was operated on domestic naphtha during May-June this year, he said.
The Block-II of the project generated electricity on naphtha for two months in May-June this year after a five-year gap. The Block was shut down on July 4 after demand dropped in the state with the onset of rains in the western region.
The government has also granted a customs duty waiver to both LNG and naphtha imports for the Dabhol power plant to make the two fuels cheaper by about five per cent.
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