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Maharashtra will buy Dabhol power at Rs 3.10

Our Bureau

Mumbai April 10 The Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has agreed to buy power at Rs 3.10 per unit from Ratnagiri Gas & Power Pvt Ltd, which now operates the Dabhol power plant. A power purchase agreement has been signed between both the parties on Tuesday.

Mr A.B. Pandey, Managing Director of MSEDCL, told presspersons that of the Rs 3.10 per unit cost about Rs 2.12 would be variable cost and 98.5 paise would be fixed cost. The variable cost is subject to change as it depends on gas availability. But he said at least for two years no major change is expected.

Supply Contract

The fixed cost is also likely to be revised by the Union and the Maharashtra Governments, he said. The full capacity of 2,100 MW of the Dabhol plant would be available to MSEDCL by December 2007. The plant will run on natural gas, which would be supplied by Petronet LNG Ltd.

Ratnagiri Gas would get about 1.5 million tonnes of natural gas per year from Petronet. The supply contract would be valid from July 2007 to September 2009.

Mr Pandey said that the plant has three blocks for producing power and the first power block would be operational by May 1, second block by July 1 and third block by December 15.

Mr S.B. Agarwal, Managing Director of Ratnagiri Gas, said that the work on the pipeline for supplying gas to the Dabhol based plant is likely to be completed by May.

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