The Eknath Shinde Government has initiated efforts to restart the 1,967MW Ratnagiri Gas and Power Pvt Ltd (RGPPL), previously known as the Dabhol power project, in coastal Ratnagiri.
The RGPPL, which used to generate 500MW for the Indian Railways, was shut after the contract ended in March. The project has not been generating power since for want of gas at an economical rate and because it was unable to find buyers at its higher tariff of about Rs 6.50 a unit.
Industry Minister Uday Samant told The Free Press Journal, “At a time when the Shiv Sena-BJP government is making all efforts to attract mega investments, the RGPPL project is not functioning, which is not good. The government will make efforts to restart it. Restoration of power generation will be helpful for industry. The state government is holding talks with the Centre for early revival of the 1,967MW project with assured gas supply.”
Samant did not, however, give a timeline for the work or say how much of the power generated would be procured by the state. The project was earlier revived in 2005 with new investors.
Maharashtra had stopped drawing power from the project when Devendra Fadnavis was Chief Minister owing to a disagreement over the company’s tariff. Thereafter, RGPPL had entered into a pact with the Railways to supply 500MW of power.
“At present NTPC is the major shareholder while the MSEB holding company’s shareholding is quite less,” a state Power Ministry source said. “The major issue is uninterrupted gas supply at an economical rate that will be crucial for an attractive tariff," they added.
Despite repeated attempts, there was no response from RGPPL. Samant’s statement coincided with the meeting chaired by Union Power Minister RK Singh to discuss issues related to gas-based power plants in the country
