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Dabhol plant to be shut briefly: Shahi

June 30, 2006 11:00 IST

The Dabhol power plant of Ratnagiri Gas and Power (RGPPL) will not down shutters. The plant, which has been facing shortage of naphtha, would resume power generation from October, Union power secretary R V Shahi said.

"There is no question of shutting down the plant. We are sure that Maharashtra will continue to buy power from the plant post-monsoon, just as the state buys from other naphtha-based plants," Shahi told Business Standard.

The state was buying close to 300 mw from NTPC's Kawas and Gandhar plants to meet its peak load demands during the summer.

With the onset of monsoon, the demand has dropped by 3000 mw and is expected to revert to the pre-monsoon levels by October. RGPPL, a peak load plant, will remain closed during the monsoon but will resume power production in October.

Mahadiscom's power purchase agreement with RGPPL expires on June 30.

Earlier, Mahadiscom had shown reluctance to buy power at a price higher than RGPPL's current price. Its officials had also said they had back-up tie-ups for power purchase from West Bengal and Orissa.

Meanwhile, the Maharashtra government has also written to the Union finance ministry to cut duties on naphtha.

State Minister for Power Dilip Walse-Patil said that the state government had given a memorandum to the prime minister on the issue during his recent visit to the state.

He said that the state had asked for a meeting with the Union power ministry on the issue. The power secretary has already written to the finance ministry to this effect and a package is expected shortly.

Gayatri Ramanathan & Makarand Gadgil in Mumbai
Source: source