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Govt confident of getting gas for Dabhol Power project

Written by: Staff

Mumbai, Apr 30 (UNI) The centre is holding talks with five countries including Qatar for supplying gas to the Dabhol Power project which would be generating 2,015 MW electricity by next year, Union Petroleum Secretary M S Srinivasan said here today.

''We are confident of completing the gas supply talks by next few months as negotiations are already on with five countries including Qatar. We will be running the total project capacity of 2,015 MW by the beginning of next year,'' Mr Srinivasan, who was in the city to attend the flag off ceremony of the drillship 'Jodies Resolution,' said.

He accepted that there has been some delay in finalising the gas supply contract for the project, which is slated to commence its operations after a span of five years on May one, using naptha as a fuel instead of LNG.

''The Government is doing its best to complete the egotiations,'' he added.

Refusing to identify the country, he said, ''Presently our team is in one of these countries and it is likely to clinch the deal.'' Dabhol project, now identified as Ratnagiri Gas Power Pvt Ltd, is designed for using LNG as fuel to power its 2,015 MW capacity. But, due to global gas supply crunch, the Governement has decided to use naptha for running the 740 MW block II of the project, six to eight hours a day for a span of 50-55 days from May one.

The project once hailed as world's costliest power plant, stopped its activities, as its promoter Enron Corporation and only customer, the Maharashtra State Electricity Board (MSEB) were engaged in a dispute over cost of electricity produced from it.


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