MUMBAI: A power purchase agreement (PPA) is expected to be finalised in 15 days on the terms of buying power from the Dabhol project, revived by the Ratnagiri Gas and Power Private Limited (RGPPL). The Maharashtra Government is looking to the Dabhol project to bail the State out of its power crisis.
Chief Minister Vilasrao Deshmukh has asked RGPPL to iron out the technical snags so that the power purchase agreement can be expedited and the project can go fully on stream as soon as possible.
Meanwhile, official sources said the Maharashtra Government had agreed to give an advance payment of Rs. 450 crore to RGPPL to help revive the plant, which would be adjusted against the power bill later.
Mr. Deshmukh called a special meeting on Thursday, with top bureaucrats, RGPPL officials, Gas Authority of India Limited (GAIL), and State power sector officials to ensure the speedy revival of the power project.
It is likely that the power from Dabhol will cost around Rs. 3.30 per unit.