The Hindu Business Line : Fuel supply issues may delay Dabhol restart

THE schedule for restarting the first phase of the Dabhol Power project seems set for a push back as Ratnagiri Gas and Power Private Ltd (RGPPL), which has taken over the defunct project, is yet to tie up fuel linkages for the 2,184-MW project. The Government had earlier anticipated that the project would go on stream by September 2006.

Soaring gas prices and the related tariff implications have made it difficult for GAIL (India) Ltd, one of the promoters of RGPPL, to tie up fuel contract in time to restart the project by mid-next year.

"We have been targeting the restart of the station by September 2006, assuming that the fuel supply contracts would be in place before the end of this year. So far nothing has been finalised since the quotes received from suppliers have been prohibitively high," said an official with one of the promoters of RGPPL.

Since, the objective is to peg the final cost of power at around Rs 2.50 per unit, tying up the fuel supply contract is proving difficult, the official said.

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