The central government is likely to persuade Maharashtra to purchase a major chunk of the power generated by Dabhol Power Company (DPC) to provide a degree of comfort to potential buyers of the controversial project. The around 1,200 mw power that the state is receiving from the state-owned National Thermal Power Corporation (NTPC) would need to be eventually substituted by power from DPC, said power ministry officials.
The share of NTPC's power, currently being transmitted to Maharashtra, would have to be diverted to other states, they added. Rubbishing Maharashtra's claims of bankrupcy, a senior power ministry official said the state has to put its house in order before it buys power from Dahbol.
"After all, Maharashtra had signed the power purchase agreement and therefore is obliged to evacuate whatever power is generated at the facility," the official said.
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DPC's power would be costlier than power generated by NTPC, even after the second phase is commissioned and the shift to liquified natural gas (LNG) takes place. All efforts, however, are being made to reduce the tariffs to the Rs 2.75-Rs 3.00 bracket and various stakeholders, led by the Indian lenders, have expressed their willingness to take cut in their investements, they said.
Following negotiations conducted by the Central Electricity Authority to explore the possibility of various states buying power from DPC, only six states have volunteered to buy a total of 800 mw generated out of the 2,144 mw project. Power ministry officials said Maharashtra has to buy power from the facility as it has a shortfall of around 1,000 mw at present. The state receives between 1,200 and 1,400 mw from NTPC at present.
"The idea is to bring the power tariffs as close to the NTPC levels. But Maharashtra will also have to put its house in order to absorb the difference in power," an official said.
The state needs to take concrete steps to address its transmission and distribution losses and also implement the Maharashtra Electricity Regulatory Commission tariff order, which has been pending since last year, ministry officials said.