The Dabhol power plant in Maharashtra has been shut down after gas supplies to the beleaguered project were stopped due to a court order on pricing of the fuel.
The operations of one 740 MW unit were stopped six days ago, sources in Ratnagiri Gas and Power Pvt Ltd, the owner of the 2,184 MW plant, said.
Gujarat High Court had on July 31 stayed the Centre's decision to raise prices of regassified-LNG supplied to consumers like Essar Steel and Gujarat State Petroleum Corp (GSPC) to subsidise fuel cost of Dabhol power plant.
Petronet LNG Ltd, which is importing 1.25 million tonnes of liquefied natural gas (LNG) for the power plant on short term basis, was supplying the fuel after the price of high cost short-term LNG was averaged with that of its long-term imports.
This essentially meant that fuel prices for Essar Steel and GSPC, which were paying 3.86 dollars per million British thermal unit for the R-LNG, went up to 5.8 dollars per mBtu. This is the price Dabhol is paying for the gas instead of import price of 8-9 dollars per mBtu.
While Essar Steel had petitioned Delhi High Court against the move, GSPC had approached the Gujarat High Court. The Gujarat High Court on July 31 stayed the new pricing.
Gas supplies to Dabhol stopped as RGGPL was not willing to pay the import price, they said.