Dabhol revival advanced to May 2006

“As per the discussions with GE, Wessoe and Basics, we are giving a tough target of May 2006 for the revival of at least first block of the project. GE which has currently deployed three experts will increase it to 10 and later to 20 in three weeks. Besides, Bechtel will also be involved on the revival of phase-I.

Shahi hoped that the per unit tariff would not exceed Rs 2.50 despite the soaring gas prices. The project’s completion (both revival and completion of phase-II (1,444 MW) cost has been pegged at Rs 10,303 crore.

However, Shahi put the ball in the court of Maharashtra Power Development Corporation Ltd (MPDCL) to purchase the entire power likely to be generated on naphtha.

GAIL India Chairman and Managing Director Prashanto Banerjee said nearly 30,000 kilolitres of usable naphtha has been lying idle at the site, which can be used to recommission the phase-I.

But both Shahi and Banerjee made it clear that this would be a transitory arrangement, as the entire project of 2,184 MW would be run on liquefied natural gas (LNG). GAIL has yet to close the LNG supply deal, as it has been negotiating with five suppliers.

Jayant Kawale, MSEB Holding Co Ltd director, was quick to make the company’s position clear saying as of now the mandate given to it by the state government is to procure power at Rs 2.30. However, the tariff would rise by 3 paise as MPDCL has claimed return on equity and dividend.