Dabhol snippets

Power-starved Maharashtra (excluding Mumbai) can expect reliably uninterrupted and slightly cheaper power from Ratnagiri Gas Power Project Ltd’s (RGPPL) Dabhol power plant soon. The state government on Tuesday signed a long-term service agreement with multinational power major, General Electric (GE), to provide spares and services at a discounted price as well as guarantee rejuvenation of its generation units at Dabhol. This, besides the availability of gas from Reliance’s Krishna-Godavari basin, will help the state reduce power tariff by 35 to 45 paise per unit. The move will benefit every area outside BMC limits in the state. Experts in power sector say that Rs 600 crore needed for the GE-led overhaul may reflect in the power tariff. However, Mehta said the quantum of money spent on buying power from outside was more and the end effect would be a small cut in per unit tariff. Dabhol supplies 930 MW of power to the state but this is expected to go up to 1,240 MW by December-end; by March 2010, Dabhol promises to add another 2,250 MW. This power is expected to bail out the state as it now faces a deficit of around 3,700 MW.