 "Maharashtra bats for early revival of Dabhol project")
Besides, the state-run Maharashtra Electricity Distribution Company (MahaVitaran), which has already terminated its power purchase agreement (PPA) with the Ratnagiri Gas & Power Pvt Ltd (RGPPL) in January this year, will procure about 85 per cent of the power, while the RGPPL can sell the balance power to various states, including Karnataka and Andhra Pradesh.
State Power Minister Chandrashekhar Bavankule told Business Standard: “The state government has also given its approval for the conversion of additional debt into equity in the RGPPL before March 31. However, MSEB Holding will continue to hold 15.32 per cent in the company. At least three meetings have held at the level of Union Finance Minister Arun Jatley for the early revival of the Dabhol project, which is closed since December 28, 2013.”
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RGPPL has already converted debt worth Rs 405 crore into equity in December last year. In addition to this, RGPPL lenders want further conversion of debt of Rs 343 crore into equity to avoid the project turning into non performing assets. ''The Maharashtra government has given its nod for the proposed conversion. The government hopes the generation will be restored soon,'' he added.
This apart, the state-run Maharashtra State Power Generation Company (MahaGenco) will enter into power purchase agreement with independent power producers whose projects with total installed capacity of 1,506 Mw are currently not operational for various reasons. Of the 1,506 Mw, IDEAL Energy has developed 540 Mw at Umred, Nagpur, Dhariwal Energy 600 Mw at Tadali in Chandrapur, Abhijit Energy 246 Mw at Nagpur and Gupta Energy 120 Mw at Chandrapur.
“If MahaGenco wants to go in for setting up of new project it will have to invest Rs 8 crore per Mega watt. It is not a good sign that a generation capacity is lying idle and therefore MahaGenco will sign PPA with these power producers. This will add more power to the state grid,'' Bavankule said.
Further, MahaGenco with its own thermal installed capacity of 7,980 Mw has already added additional 2,500 Mw. MahaGenco is currently engaged in the capacity addition of 3,230 Mw which will be completed by the end of 2015-16.
Earlier, in his reply to the debate in the state Assembly, Bavankule announced that a comprehensive policy for the promotion power generation by non-conventional sources will be announced soon. He informed that 14,400 Mw comprising solar (7,500 Mw), wind (5,000 Mw), co-generation (1,000 Mw), small hydro power projects (400 Mw), industrial waste (300 Mw) and bio mass (200 Mw) will be added in the state.
Further, the minister also declared that special audit of state companies, including Maharashtra State Power Generation Company (MahaGenco), Maharashtra State Power Transmission Company (MahaTransco) and Maharashtra State Electricity Distribution Company (MahaVitaran), will be conducted.
He was responding the demand made by the leader of opposition Radhakrishna Vikhe-Patil, who had alleged that there was corruption and favouritism in these companies during the previous Congress-NCP government in which Vikhe-Patil was also the Cabinet minister. Incidentally, energy department was held by the NCP.