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GE stitches Dabhol deal

Nearly five years after the revival of the erstwhile Dabhol power project, General Electric on Tuesday signed a service and guarantee agreement with Ratnagiri Gas and Power Projects Ltd (RGPPL), the new owner of the project, for successful running of the machines and turbines supplied by it to the beleaguered power plant in Maharashtra. AnupamaAiry comments.

business Updated: Jul 07, 2009 22:59 IST
Anupama Airy

Nearly five years after the revival of the erstwhile Dabhol power project, General Electric on Tuesday signed a service and guarantee agreement with Ratnagiri Gas and Power Projects Ltd (RGPPL), the new owner of the project, for successful running of the machines and turbines supplied by it to the beleaguered power plant in Maharashtra.

This has come as a major headway in solving the imbroglio over repeated failure of machines supplied by US’ GE to the Dabhol power project.

In the absence of such an agreement, issues concerning costs and time overruns in repairing the equipments supplied by GE have been raised time and again by the management of RGPPL. With the signing of this 16-year comprehensive service agreement, GE will take the responsibility for all damages in the machines supplied by it, besides ensuring the repairs.

Michael J Kalmes, vice president, GE and head of GE Energy Services Global Sales on Tuesday signed the agreement with RGPPL in Mumbai.

“Without looking at the past, I would say that this is a new beginning for the two sides,” said Kishore Jayaraman, CEO, GE Energy (India). “We want to see the power plant running full stream and that will happen soon.”

The CSA signed between GE and Ratnagiri Gas and Power Project Ltd would ensure 85-90 per cent of machine availability of the turbines were installed at Dabhol at a negotiated price, details of which the officials at GE refused to share.

The Dabhol power plant has three blocks with six gas turbines. However, only three to four turbines are functioning at present, due to which power generation from the plant has come down to less than 1,000 mw against the rated capacity of the plant at 2,160 mw.

The project, originally called Dabhol Power Co, was renamed RGPPL after it was taken over by a combine of public sector banks, the Maharashtra government, GAIL, NTPC and financial institutions.

Michael J Kalmes, vice president, GE and head of GE Energy Services Global Sales on Tuesday signed the agreement with RGPPL in Mumbai.

“Without looking at the past, I would say that this is a new beginning for the two sides,” said Kishore Jayaraman, CEO, GE Energy (India). “We want to see the power plant running full stream and that will happen soon.”

The CSA signed between GE and Ratnagiri Gas and Power Project Ltd would ensure 85-90 per cent of machine availability of the turbines were installed at Dabhol at a negotiated price, details of which the officials at GE refused to share.

The Dabhol power plant has three blocks with six gas turbines. However, only three to four turbines are functioning at present, due to which power generation from the plant has come down to less than 1,000 mw against the rated capacity of the plant at 2,160 mw.

The project, originally called Dabhol Power Co, was renamed RGPPL after it was taken over by a combine of public sector banks, the Maharashtra government, GAIL, NTPC and financial institutions.