Following the footsteps of State Bank of India and ICICI Bank, Canara Bank has classified its loan to Dabhol Power Company as a non-performing asset.
The government plans to operate a second unit of Dabhol project on naphtha from May to partly tide over the massive electricity shortages in Maharashtra during summer.
The proposal to hive off the LNG terminal at the revived Dabhol power plant in Maharashtra is likely to be scrapped, with promoters and financiers agreeing to pump in Rs 24 billion to restart construction work at the plant.
Originally, it was envisaged that the 2,150-MW power plant would shift to imported-LNG once the terminal is completed but now natural gas from Reliance Industries' eastern offshore D6 field is envisaged to fire the plant.
"There are eight companies (who have put in expression of interest)... RNRL is one of them," said A K Ahuja, managing director, Ratnagiri Gas and Power Pvt Ltd, the company that operates the nation's biggest gas-fired power plant and the adjacent LNG import facility. Others in the fray include state power utility NTPC and GMR. Ahuja said RGPPL will frame the bidding criteria and call for financial bids by next month.
The Empowered Group of Ministers looking into the Dabhol power project fiasco is likely to meet on Friday to discuss ways to restart the plant that has been lying idle for over three years.
Dredging of the sea-channel leading to the Dabhol terminal is likely to be completed by end of 2011 but the construction of a breakwater that will guard ships against high tides, was not likely before 2013-14.
GAIL (India) Ltd has agreed to infuse an additional Rs 500 crore (Rs 5 billion) into Ratnagiri Gas and Power Pvt Ltd to enable the owner of the beleaguered Dabhol plant to clear pending dues of contractors.
The 2,140-Mw Dabhol power plant, operated by Ratnagiri Gas and Power Pvt Ltd, continues to remain idle even though the Supreme Court has vacated the stay by the Gujarat high court on pooling of gas prices.
Supply of the much-needed gas to Dabhol is set to be delayed again. The reason: shortage of pipes required to build the Dahej-Uran pipeline which will feed the gas to the plant.
Ratnagiri Gas and Power Pvt Ltd, the new owner of the Dabhol power project,
The company has four lenders -- State Bank of India, IDBI, ICICI and Canara Bank. According to the Reserve Bank of India norms, these loans would be declared as NPAs if the project is not financially restructured by March 31, 2009. The restructuring exercise includes a 50 per cent hike in the tariff for sale of power from the project, to be allowed by the Central Electricity Regulatory Commission. The project is expected to become viable after this.
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).
Electricity from Dabhol power project in Maharashtra, which is likely to restart from July 2006, will cost Rs 2.50 to Rs 2.75 a unit, 20 per cent more than previous estimates as natural gas prices have firmed up.
The plant will start functioning to its fullest by the end of January 2008, after delay of one-month from previous schedule.
Maharashtra on Monday said the LNG pipeline for supplying gas to the beleaguered Ratnagiri (erstwhile Dabhol) power plant would be completed by April this year after which the cost of power would work out to be Rs 3 per unit.
Ratnagiri Gas will be an equal JV between NTPC and GAIL if MSEB which has been offered a small stake does not pick up equity
Indian FIs have reached a settlement with the consortium of offshore lenders and Overseas Private Investment Corporation in their bid to restart DPC.
Ratnagiri Gas & Power did some local development under its corporate social responsibility programme.
As turbines fail and costs shoot up, is anyone accountable for the mess at India's costliest power project.
The 1,967 MW plant has not been operating since August because of stoppage of natural gas supplies from domestic fields.
ExxonMobil-owned RasGas will supply liquefied natural gas by December to restart the Dabhol power project in Maharashtra, a top official said on Friday.
Maharashtra Chief Minister Vilasrao Deshmukh on Saturday said power generation in the energy-hungry state would grow by 2000 mw within a year with the Dabhol plant becoming operational again.
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