The Godbole Negotiating Committee, set up by the Maharashtra government, has recommended that the Indian government should take a hit of Rs 5,663 crore as a step towards reducing the tariff rate for the power produced by the Dabhol Power Company significantly.
The Committee has proposed in its report that various stakeholders including the Government of India, the state government and the main promoters will have to absorb major losses for reducing the tariff to Rs 2.25/kwh-Rs 2.4/kwh range. This will ensure that the base load plant would operate at a high plant load factor (PLF). At the current tariff rates, which are in the range of Rs 3.65 to Rs 3.91/kwh at 90 per cent PLF, it will be hard to find any buyers in the country, the committee stated in its report.
Explaining how it had arrived at the Central government