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Power woes may end next summer

india Updated: Jul 08, 2009 01:35 IST
Hindustan Times
Dabhol-based Ratnagiri Gas and Power Private Ltd

Maharashtra may expect more comfort next summer as the Dabhol-based Ratnagiri Gas and Power Private Ltd’s (RGPPL) plant expects to run full throttle giving in 1,900 mega watts of power.

On Tuesday, RGPPL signed a long-term agreement with GE Energy to improve the performance of the decade-old plant. GE Electric will see to it that the plant runs smoothly by conducting regular maintenance work.

The Rs 660-crore 16-year agreement will include power availability guarantee for GE’s equipment and a provision of spare parts as required.

The RGPPL will have a right to terminate or change the contract after eight years. Three units of 310 MW each are working at RGPPL. With a contract in place, GE will ensure that the rest three are revived by next March.

The state-owned company, the Maharashtra State Electricity Distribution Company is the sole buyer of RGPPL power.
“We expect to reduce power cuts drastically after getting this much power,” said Energy Minister Sunil Tatkare. A tariff issue may further delay the RGPPL supply, said a source requesting anonymity.

“The RGPPL has asked to increase tariff because it needs more money (about Rs 600 crore to revive the plant. The petition is pending with the Central Electricity Regulatory Commission (CERC), which may not approve of it.”

Tatkare assured that the issue would be resolved. “We may appeal before the tribunal if the CERC doesn’t approve of hike because we know that RGPPL needs extra money.”