Dabhol Block-3 to start tranmission in April:NTPC Director

Kolkata, Feb 23 (UNI) Dabhol Block-3 will start power transmission by April 31 of this year, NTPC Director (Operations) Chandan Roy said here today.

Speaking to mediapersons on the sidelines of a seminar, Mr Roy said, ''The second block is currently operating on Naptha. We will also change it to coal by the year end.'' The Centre was worried over the time and cost in completing the unfinished work of Dabhol power plant, which led the Empowered Group of Ministers to consider a restructuring proposal for Ratnagiri Gas and Power Pvt Ltd, which owns the project, to give the 2,150 mw project a fresh lease of life.

The delay in revival has resulted in a cost escalation of Rs 2,594 crore over the original Rs 10,303 crore project cost. Among the ideas being mooted is a proposal to reduce the interest rate for lenders from 8 per cent to 3 per cent.

The EGoM would also discuss options relating to relaxation in depreciation and return on equity as well as pumping in more funds by lenders as the revival cost has increased.

The Gail and NTPC, are the joint owners of RGPPL, 28.33 per cent each in RGPPL.

UNI