Ratnagiri Gas and Power Private Limited (RGPPL) is approaching all states in the Western region for firm commitments to purchase power from its proposed 2,100 MW expansion project. The feasibility report regarding the expansion of the RGPPL is due to be placed before the meeting of the company board due soon. The project,which is located in Ratnagiri district on the Konkan coastline,currently has a 1,940 MW installed capacity.
We have received a 750 MW comfort letter from the Maharashtra government. We have written to other states from the Western region asking them how much they will buy on a firm basis, said a senior RGPPL official,adding that rest of the power for which firm commitments had not been received,would be sold on a merchant basis. The RGPPL has so far received firm commitments for off take of 60 MW power,he added. In case of less firm commitments from states for purchase of power,the RGPPL would also consider expanding the project in modules,with the later phase being taken up once more commitments were received,said the official.
The project is expected to have a 2,100 MW base capacity and the official said the capacity could fluctuate depending on the module to be provided by the supplier who would be selected through the international competitive bidding (ICB) route. Depending on the supplier module,the capacity may go up or down, he added,while stating that 2,100 MW would be the base capacity.
The project is likely to be set up 28 months after the award of the contract. The Gas Authority of India Limited (GAIL),which is one of the stakeholders in RGPPL,will import LNG for the project,and the cost of power is expected to fluctuate between Rs 4 and 5 per unit depending on the crude price index.
The official added that the proposed expansion was likely to need 9 million metric standard cubic meter per day of LNG. The project will also need equity infusion from stakeholders like the Government of Maharashtra,GAIL,National Thermal Power Corporation (NTPC) and financial lenders.
The RGPPL project which was originally rated at 2,150 MW and was revived in 2005 to take over the assets of the erstwhile Dabhol Power Company (DPC) promoted by the controversial Enron Corporation with stakeholders such as NTPC,GAIL,Maharashtra State Electricity Board (MSEB) and financial lenders. The project is located at a distance of around 300 km from Mumbai and is spread over around 1,700 acres of land.