Power generation in Dabhol stopped: Govt

New Delhi, July 31 (UNI) Power generation in Ratnagiri Gas and Power Ltd earlier known as Dabhol stopped power generation on 4th July and the main fuel LNG would be available only after March 2007, the Rajya Sabha was informed today.

Speaking in the Upper House, Power Minister Sushil Kumar Shinde said RGPPL having fulfilled its one-time commitment to supply power of three million units during May-June 2006 and in the absence of further demand for power from the Maharashtra State Electrcity Distribution Company Limited (MSEDCL), the sole buyer, the units have been kept in reserve shut down mode.

''As per the one time arrangement between RGPPL and MSEDCL, infirm power was supplied at 4.25/KWH,'' the Minister said.

The minister also confirmed the fact there is a need to reduce the cost of generation of the electricity in the project of RGPPL.

Mr Shinde said the main fuel for the plant which is LNG is likely to be available only after March 2007.In the interim period, efforts are being made by RGPPL to operate the plant on Naphtha.

Since prevalent Naphtha prices are very high, the government have given exemption from payment of customs duty for the import of Naphtha for use by the plant, so as to reduce the cost of generation on Naphtha and make it acceptable to MSEDCL.

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