Dabhol will get operational by January

When the Ratnagiri Gas and Power Private Ltd (RGPPL) will be fully commissioned in January, it will be the costliest power project in the country with the total cost escalating to Rs12,377 crore.

Since October 2005, when RGPPL, previously Dabhol Power Project, took charge, the cost has risen from the estimated Rs10,038 crore to Rs12,377 crore mainly on account of rise in the revival of power blocks, LNG terminal with breakwater and interest during construction.

The MSEDCL, which is banking entirely on Dabhol project to meet its over 5,500 MW deficit, and RGPPL are hoping that if the escalation cost and the availability of gas is in place the state can get the entire 2,000 MW of power by January next year. Energy minister Dilip Walse Patil convened a meeting with all concerned authorities at Dabhol on Thursday.

At present, RGPPL is producing 475 MW from Block 2 of 740 MW and the remaining capacity would be functional by month-end. Block 3 is expected to be operational by October and Block 1 is expected to be commissioned by January.

“Of the total Rs1,957 crore revival cost incurred, financial lenders have agreed to pump in Rs466 crore. As they have not agreed to shell out the remaining Rs 623 crore, we have decided to invoke the clause under the common term loan agreement whereby lenders are supposed to bear the additional cost,” Chandan Roy, chairman of RGPPL said.