Dabhol project revival depends on Centre's help.

Despite fall in gas prices the revival of the 1,967-MW Dabhol power project will have to wait till a high-powered committee appointed by the Centre submits its report.

Gas prices have fallen to $10 per million British thermal unit. But the fate of the power project, run by Ratnagiri Gas and Power Pvt Ltd. (RGPPL), will hang in balance till the committee takes a decision on gas pooling, reduction in certain taxes and providing per unit subsidy.

Even though the power will be available at around Rs. 4 per unit, RGPPL will have to take the Maharashtra State Electricity Distribution Company (MahaVitaran) on board as the gas will be sourced other than KG D6.

MahaVitaran has a power purchase agreement (PPA) with RGPPL as it draws about 95 per cent of the power from the Dabhol project, which has been closed since December 28 last year for want of gas.


BS