CERC permits Dabhol to sell power to Maharashtra Discom

New Delhi, Sep 26 (UNI) The Central Electricity Regulatory Commission (CERC) today gave a green signal to Ratnagiri Gas and Power Pvt Ltd (RGPPL) for a one time tariff payment for October 2006 to March 2007 to Maharashtra State Electricity Distribution Co Ltd (MSEDCL).

The CERC also permitted RGPPL to enter into firm and clear agreement for the sale of power to MSEDCL in case the Maharashtra Discom agrees to purchase power to be produced with naphtha as fuel.

The commission gave its consent on hearing the plea of MSEDCL that Maharashtra would be facing a peaking shortage to the tune of 3,000 MW in the coming months. The MSEDCL had told the CERC that it was interested in buying power from Ratnagiri Power Project produced with naphtha, since LNG was not available.

The CERC observed that since the proposal of RGPPL was an interim arrangement for sale of power, it would be better for the generator and buyer to come to a mutually acceptable and reasonable rate considering energy charges, incidental charges and operating schedule.

The case has been listed for hearing again on October 17 but, in order to facilitate timely availabiltiy of power, the commission said that RGPPL was free to enter into agreement with prospective buyers and go ahead with the procurement of naphtha and make other preparations even before the next hearing.

RGPPL is a joint venture between NTPC, GAIL, MSEB Holding Company, ICICI, IDBI, SBI and Canara Bank. The company has taken over the 2m150 MW power project of Dabhol Power Company which was abandoned in June 2001.

During the hearing, RGPPL mentioned that the normal fuel, namely, LNG has not yet been arranged so far to enable the plant to be used commercially.

The plant has one power block of 740 MW technically ready to generate electricity, which the company has proposed to operate on naphtha during October 2006 to March 2007 in order to meet the urgent need of electricity in the state.

It was informed during the hearing that naphtha prices had come down and the energy cost would about Rs 4.80 per unit. The incidental charges could be of the order of 87 paise per unit.

MSEDCL had indicated that a price of about Rs 5.50 per unit would be acceptable to them.

The CERC observed that for this type of short term arrangement for sale of power, a mutually agreed reasonable rate between the parties would be acceptable.

UNI RT PKS GC1910