New Delhi, Apr 20 (UNI) State-owned NTPC Ltd one of the main promoters of Ratnagiri Gas and Power Ltd, previously known as Dabhol today said it would sell power to the Maharsahtra government at Rs 4.25 a unit, Chairman and Managing Director T. Sankaralingam said.
Th price is more than the earlier envisaged price by the government slated at Rs 2.50 a unit.
Mr Sanakalingam said naphtha would be used for the peak period of 40 days for restarting the first phase of the 2,184 MW power project in Ratnagiri distric of Maharashtra.
The hike in cost is mainly attributed to the use of the more expensive naphtha in restarting the 740 MW first phase of the power project. Power Secretary R. V. Shahi had said that the mothballed project could be restarted before May 1 and that efforts were on to restrict the cost of power to under Rs 5.70 per unit.
This is, however, way off the Government's initial cost estimates, according to which power was to be generated by the project at around Rs 2.30-2.50 per unit.
Meanwhile, Bechtel Corporation has finally signed a payment-for-services contract with Bharat Heavy Electricals Ltd (BHEL) that would give an added boost for restarting the project.
The start of the project was also suffering due to disagreements between Bechtel and the promoters NTPC and GAIL to the Dabhol project.
Bechtel, the original EPC engineering, procurement and construction contractor for the project had signed the contract with state-owned BHEL.
The US based Bechtel's participation is vital in re-establishing linkages of the main plant with its turbines, regasification plants and the water channels.
Meanwhile, Union Power Minister Sushil Kumar Shinde had recently said there was no hitch in the start-up schedule of the multi-phase 2,184 MW project which was initially set up by the erstwhile Enron of the US at a cost of 2.9 billion dollars four years back.
Mr Shinde said the plant was to be operated for only three hours each day to meet the peaking shortage.
Naphtha was to be procured from Iran and Oman while LNG would be made available after 6 to 12 months as a number of factors, including pricing, had to be considered.
For LNG, Qatar was expected to supply 2.1 million tonnes annually from December. Petronet India was already engaged in negotiations with Rasgas for long-term supplies.
UNI RT MP GC1902