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Dabhol project to get gas by March-end
Our Bureau
New Delhi, Nov 16
The Dabhol project is likely to switch to using gas as fuel by March-end next year in place of expensive naphtha being utilised for current operations.
"The Petroleum Ministry has assured us of gas or LNG supplies starting March-end 2007," Power Secretary Mr R.V. Shahi told newspersons on the sidelines of a Power Ministers' conference.
In September this year, the Power Ministry had asked the Petroleum Ministry to evaluate options to secure fuel tie-up for the project, which was shut down in July after three months of operations using naphtha feedstock stored at the facility.
The project was restarted on November 1 with a 740 MW Block-II of the 2,184 MW project being run on imported naphtha as a stop-gap arrangement till the new promoters, GAIL India Ltd and NTPC Ltd, tied up natural gas supplies.
With naphtha, the cost of generation is likely to be more than Rs 5 per unit.
Last month, the Central Electricity Regulatory Commission (CERC) had cleared a proposal by Ratnagiri Gas Power Project Ltd x the new owner of the Dabhol power project x to sell up to 700 MW to Maharashtra State Electricity Distribution Company Ltd at a mutually agreed base price of Rs 5.01 per unit from November 2006 to March 2007.
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