RGPPL-Mahavitaran sign PPA

Mumbai, Apr 10 (UNI) In a move to pave way for quick revival of the 2,150 MW Ratnagiri Gas and Power Project Ltd (RGPPL), Maharashtra Government's power utility 'Mahavitaran' today signed the Power Purchase Agreement (PPA) with RGPPL to procure power at the cost of Rs 3.10 per unit.

The PPA was signed by Mahavitaran MD Ajay Bhushan Pandey and RGPPL MD S B Agrawal here.

Addressing a press conference, Mr Pandey said the tariff of Rs 3.10 was arrived at on the basis of the price of gas which is Rs 2.12 and the fixed Capacity Charge of 98.5 paise. The charge is subject to further review and finalisation by the Centre and Maharashtra Government.

The Commercial Operation Date of Block 2 was May one, 2007, Block 3 was July one, 2007 and Block one December 15, 2007, subject to the availability of gas. Block 2 is currently functional which produces about 350 MW and the entire block will be ready by May one, he added.

He said Gas supply from re-gasification of 1.5 MMTPA LNG till September 2009 has been arranged through Petronet LNG Ltd. The total required Gas/LNG will be procured through short term contracts/long term contracts through GAIL and under directions of the Centre, he informed. Gas from Petronet at Dahej in Gujarat will be transported to Dabhol by GAIL pipeline which will be completed by May this year, he said.

The term of Agreement of the PPA is of 25 years from the Commercial Operation Date (COD) of the last block, he added.

Mr Agrawal said based on current projections, Maharashtra will have to pay Rs 4,500 crore every year for procuring 2,150 MW of electricity from RGPPL.

UNI