Government to revive Dabhol power project.

The Centre will be reviving the defunct Dabhol power project in Konkan region. Union energy minister Piyush Goyal who was in Mumbai on Thursday, did not rule out possibility of privatisation, if the move would be taken in the public interest.

'The previous Congress-NCP government has left us with a liability of Rs. 2,000 crore. Banks are under stress and we are proposing a discussion of the matter at a high level within 15 days to resolve it,' Mr Goyal said. The Dabhol power station is the largest gas-based power plant in the country. It is run by Ratnagiri Gas and Power Pvt. Ltd., but it has not been functional for over a year.

On a query if the government was in favour of privatisation, the minister said that it was if privatisation was in larger public interest.

'I am open to all options to resolve the issue. If privatisation is going to help, then we will think about it. It has to be in favour of the people. We are open to ideas and are not ruling out any option,' Mr Goyal said, hinting that the government might opt for privatisation of the plant.

The Union energy minister has also sought opinion from the state government on the Dabhol power plant. 'I spoke to chief minister Devendra Fadnavis and state energy minister Chandrashekhar Bavankule on the issue. They are yet to form their opinion on it, and we will also take their view into consideration before taking any decision,' Mr Goyal said.

With the capacity to generate 1,940 MW, the Dabhol plant was closed down due to shortage of gas. Commenting on the issue, the Union minister said, 'The gas supply in the country is down overall and we will have to look into innovative methods.'

The Dabhol power station became functional in 1999. However, political controversies and technical issues marred the project.


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