Maharashtra Cabinet on Tuesday cleared the decision to revive Ratnagiri Gas and Power Private Limited (RGPPL) — the erstwhile Dabhol Power Project, which was earlier known as U.S. power company Enron — by approving special concessions. The project will restart on November 1.
The Cabinet also approved the guidelines for dividing the plant into two separate companies — one to manage power plant and other to operate Liquefied Natural Gas (LNG) — to revive the project.
RGPPL — a JV of State-owned power generator NTPC and gas utility GAIL, which took over the 1967 MW power plant and adjacent 5-million tonne a year liquefied natural gas (LNG) import terminal in July 2005 — will be split into two separate firms, one to manage the power plant and the other to operate the LNG facility.
Ratnagiri Power Pvt will have same shareholders as RGPPL — NTPC and GAIL hold 25.51 per cent each, the Maharashtra State Electricity Board (MSEB) 13.51 per cent and financial institutions the remaining 35.47 per cent.
Ratnagiri Gas will be an equal JV between NTPC and GAIL if MSEB, which has been offered a small stake does not pick up equity.
The Dabhol project is shut since 2013 due to want of fuel (Natural Gas). The generation would be through use of subsidy on LNG being provided under the Power System Development Fund (PSDF) set up by the government to help power companies buy expensive imported fuel.
The State too has agreed to provide special concessions under it. On Tuesday, the Cabinet announced waiving of VAT, CST and Octroi. GAIL would provide 50 per cent concession on pipeline and re-gasification rates.
Out of the 500MW electricity that is to be generated, Railways would be buying 250MW for Maharashtra, 50MW for Gujarat and 100 MW for Jharkhand and West Bengal respectively.
