Rediff.com  » Business » Is Dabhol project to be privatised soon?

Is Dabhol project to be privatised soon?

January 16, 2015 12:33 IST

The minister said he would convene a meeting in the next 10 days with lenders to the troubled project, the officials of Maharashtra government and its undertaking Maharashtra State Electricity Distribution Company.

Dabhol projectThe Centre is open to all options, including privatisation of the now-defunct 1,967-Mw Dabhol power project operated by the Ratnagiri Gas and Power Private Ltd in Maharashtra, said Union Power Minister Piyush Goyal here on Thursday.

The minister said he would convene a meeting in the next 10 days with lenders to the troubled project, the officials of Maharashtra government and its undertaking Maharashtra State Electricity Distribution Company (MahaVitaran) to discuss the issues pertaining to the arrears of Rs 2,000 crore (Rs 20 billion).

The purpose of the meeting is to discuss how the project could be revived.

Goyal’s statement comes in the wake of RGPPL board giving its approval last month for the conversion of debt into equity equivalent to interest dues of Rs 405 crore (Rs 4.05 billion).

This has led to increase in RGPPL's equity to Rs 3,370 crore (Rs 33.7 billion) from Rs 2,965 crore (Rs 29.65 billion).

As far as the availability of 8.5 million standard cubic metre per day of gas supply from KG D6 for the project to run at 85 per cent plant load factor, Goyal said the Centre was working out a slew of measures so that gas was supplied not only to the power project but other gas-based projects across the country too.

Goyal also said the Centre was planning to float tenders for five ultra mega power projects with 4,000 Mw each during the current calendar year.

“An expert committee will submit a report within a month on how to go about on the implementation of ultra mega power projects in the country,” he added.

According to the minister, the Centre has proposed an investment of $250 billion in generation, transmission, distribution, renewable energy and coal production in a bid to achieve 24x7 power supply.

He said funding was not an issue, adding that there had been a renewed confidence after Narendra Modi took over as Prime Minister.

Moreover, Goyal said the Coal India would invest Rs 5,000 crore (Rs 50 billion) for the development of additional rail rakes in Odisha, Jharkhand and Chhattisgarh.

BS Reporter in Mumbai
Source:
SHARE THIS STORY