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Our Bureau

New Delhi , Oct. 17

The Central Electricity Regulatory Commission (CERC) on Tuesday approved a proposal by Ratnagiri Gas Power Project Ltd — the new owner of the Dabhol power project — to sell up to 700-MW power to Maharashtra State Electricity Distribution Company Ltd (MSEDCL) at a mutually agreed base price of Rs 5.01 per unit from November 2006 to March 2007.

MSEDCL plea

The Commission gave its consent on hearing the plea of MSEDCL that Maharashtra would be facing a peak shortages of up to 3,000 MW in the coming months and hence the company was agreeable to purchase power at a base price of Rs 5.01 per unit. Maharashtra will buy up to 700 MW from Block II of the plant, which will be run on imported naphtha.

The Dabhol power plant will be restarted after a gap of more than four months.

The total cost of power at Rs 5.01 per unit comprises Rs 4.71 as capacity charges and 30 paise as incidental charges per unit of electricity.

The agreement would include a mechanism for fuel price escalation.

In case naphtha price increases in the global markets, the additional cost would be pass-through and the State will buy power even if the tariff crosses Rs 5.50 per unit, the petitioners told CERC.

Ratnagiri Gas Power officials told the Commission that Indian Oil Corporation will import naphtha within "four weeks" and Block-II, which was shut down in July this year after being operational for two months during May-June, would generate electricity from the middle of next month till March-end 2007.

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