Dabhol gas may miss deadline

Completion of Ratnagiri LNG works terminal to be delayed by at least four months.

The Ratnagiri liquified natural gas works terminal, which will cater to the Dabhol power plant, is likely to miss the December deadline by at least four months. This is likely to delay delivery of gas to the project and thus hit power production.

Gas Authority of India Ltd has told the power ministry that it will be able to complete the facility not before April 2007.

"Certain long delivery items are expected to have a lead time of around a year. The ministry has found the delay unacceptable and has urged the company to hasten up the process. We have told it that there have been many delays in completion of the LNG terminus. Any further delay may jeopardise the revival of the plant," officials said.

In another development, Maharashtra State Electricity Distribution Company Ltd has agreed to an upfront payment to Ratnagiri Gas and Power Ltd to arrange necessary fuels.

"This has been done as the company was facing difficulty in getting loans due to non-availability of adequate payment security. The distribution company's reluctance to accept an adhoc tariff beyond Rs 4.25 per kilowatt hour has been accepted," officials added.

The inability of the project lenders to absorb the entire cost of synchronisation, estimated to be around Rs 107 crore, has also been dealt with. They will have to pay only Rs 23 crore.

"The fuel cost shall also be adjusted to make the model revenue neutral for all stakeholders," sources said. The plant is generating 180-Mw against a capacity of 2,150 Mw.