The Central Electricity Regulatory Commission (CERC) has approved a proposal from Ratnagiri Gas Power Project Limited (RGPPL), better known by its former name, Dabhol Power Company, to sell up to 700 megawatts (MW) of power to the Maharashtra State Electricity Distribution Co Ltd (MSEDCL) at a mutually agreed base price of Rs 5.01 per kilowatt for the November 2006 to March 2007 period.
The Commission gave its consent on hearing MSEDCL’s plea that Maharashtra would face a peaking shortage to the tune of 3,000 MW in the coming months.
The CERC was informed that the electricity from RGPPL would be produced with naphtha, since liquefied natural gas (LNG) was not available at present. The fuel charge of Rs 4.71 was corresponding to the current naphtha price of $ 492 per tonne.
MSEDCL said it would approach the Maharashtra Electricity Regulatory Commission (MERC) for approval of the required terms and conditions for such a purchase.
The Commission, while approving the sale price, has sought a copy of a tripartite agreement to be signed among RGPPL, MSEDCL and the Indian Oil Corporation. It has also directed RGPPL to make immediate arrangements for the purchase of naphtha so that generation could be started by mid-November.