Ratnagiri Gas & Power (RGPPL) will meet tomorrow to consider tariff recommendations of the Central Electricity Regulatory Commission (CERC) and decide on the future course of action.
"We have convened a board meeting tomorrow to discuss the issue and take it up further with the government based on the outcome of the meeting," RGPPL Chairman R K Goel told reporters here.
In an order passed recently, CERC said the target availability for the generation station is not justified for the proposed tariff, as the project's gas availability for 2008-09 has been reduced to 34.3 per cent from 70.2 per cent a year ago.
RGPPL asked for relaxation of the target availability norms on which CERC held that the risk of such low level of operation of the station has to be borne by the power producer.
RGPPL had proposed a tariff hike of up to Rs 4.44 per unit (capacity charge Rs 2.65 + Rs 1.79 fuel charge) for 2009-10, in a petition that it had filed in April.
Asked about maintenance agreement with General Electric (GE), Goel said terms and clauses have been agreed upon and the agreement would be signed after board approval.In 2007, the power ministry had blamed GE for the turbine failure at the project.
The power project, rechristened RGPPL was conceived in the early 1990s with a capacity of 2,150 Mw. It ran into a series of problems and was eventually acquired by a group of public-sector banks, the Maharashtra government and financial institutions.