The Dabhol power plant in Maharashtra recommenced electricity generation on Thursday after remaining shut for nearly two years, an official statement said.
"The Dabhol power plant, owned by Ratnagiri Gas and Power Private Limited (RGPPL), restarted electricity generation this morning after having been shut for nearly two years due to shortage of domestic gas," said a power ministry release here.
"The electricity generation will be further scaled up in the coming months. This achievement was made possible with the concerted efforts of several stakeholders: the central government, which allocated gas under the new pooling mechanism for gas-based power plants, Maharashtra state government, NTPC, GAIL, MERC and Indian Railways," it added.
The plant is initially producing 290 MW power which will be sold to the Indian Railways, it said.
"This is the railway ministry's initiative to save energy cost, next step. Power started flowing from RGPPL plant. This will give an annual savings almost Rs 1000 crores," tweeted Railway Minister Suresh Prabhu.
RGPPL, promoted by NTPC and GAIL, was set up to takeover and revive the assets of Dabhol Power Company project.
The company has 1,967 MW capacity power plant located at village Anjanwel, in Ratnagiri district in Maharashtra, nearly 330 km away from Mumbai.