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No takers for high cost power from Dabhol's project

No takers for high cost power from Dabhol's project

Ratnagiri Gas and Power’s plan to add another 2,100 MW of generating capacity at its Dabhol plant is apparently stuck as Maharashtra government is unwilling to pay more for the supply. The expansion which is estimated to cost Rs 8,820 crore will raise the tariff by almost 70 per cent. Power from its existing 1,950 MW plant is sold at Rs 3.80 a unit while the new proposed tariff is around Rs 6.50 a unit, on account of limited availability.


The company has already applied for gas to the Central Electricity Authority, but is unaware as to when the allocation will come. Ahuja stated that the board has approved its feasibility report on the proposed expansion, but the Maharashtra government is not ready to sign a power purchase agreement (PPA) as it is not willing to buy power at more than Rs 3.50 per unit.

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