Dabhol Power Project revival costs goes up by over Rs. 10,000-mn

Dabhol: The cost of reviving the Dabhol Power plant has gone up to Rs 1,957 crore from Rs 870 crore. The cost includes revising all the three blocks in the plant and creation of break water and LNG Terminal, said Mr Chandan Roy, Chairman Ratnagiri Gas and Power Private Ltd, that runs Dabhol Power Plant (RGPPL).

The total cost of the plant now is expected to go up Rs 12,370 crore from Rs 10,038 crore.

Speaking to newspersons at the Dabhol Power Plant on Thursday, Mr Roy said, “The cost of reviving the plant has escalated by more than Rs 1,000 crore.

While the lenders (ICICI, SBI and IDBI) to the plant will have to pay the escalation cost, if need be RGPPL will invoke common loan-term agreement.”

Under the agreement, the escalation cost up to Rs 466 crore has been covered, but the lenders would have to pay another Rs 620 crore. Mr Roy said that the plant could also be upscaled to 5,000 megawatts (MW) depending on the availability of gas. He also said that the LNG terminal would be completed by March 2008.

The gas requirement for the current capacity of the plant (2,150 MW) would be 2.1 million tonnes, however if upscaled to 5,000 MW it would be five million tonnes. Mr Roy added that all the three blocks of the plant totalling 2,150 MW would be on line by January 2008.

While Block II of 740 MW would be operational by end of September 2007, Block III would be operational by October 2007, however, Block I will be operational by January 2008.