Pranab goes to Oman to fix up gas for Dabhol

A solution to the problem of gas supply to the Dabhol plant seems to be in sight, as Defence Minister Pranab Mukherjee is flying to Oman on Saturday to tie up the loose ends on the issue.

Sources in the state energy ministry said the groundwork for the trip was done by Prithviraj Chavan, minister of state in the Prime Minister's Office (PMO), and other officials from the power and petroleum ministries over the last two to three months.

Since Mukherjee wields a lot of clout in the government and is one of its seniormost minister, the sources said a solution is imminent. Mukherjee is leading a high-powered delegation of senior Union and state power ministries.

The sources, however, said even if the team manages to sew up the deal, gas supply would not commence till December, and till then the plant would have to run on naphtha. They said Ratnagiri Gas & Power Pvt. Ltd (RGPPL), which now runs Dabhol, would be able to synchronise the plant by mid-May.

In addition, both the phases of the the plant could be started by early next year.

This would mean a huge relief for the state as both the phases, when operational, would generate 2100 MW, reducing the 4,500 MW power shortage in the state by almost half.

On the issue of the price of Dabhol power, the sources said it would be much less than the unscheduled inter charges of Rs 5.50 per unit paid by the state now.

The charges are imposed by the Power Grid Corporation on those power utilities which draw excess power during peak hours.