Ratnagiri Gas set to start production by summer: Shahi

The summer of 2006 for the state may not be so hot, thanks to the plans of Ratnagiri Gas and Power (RGPPL).

The company, which took over the assets of the defunct Dabhol Power Co last week, plans to restart at least one power block in time to meet the peak summer demand by providing at least 640 mw to the energy-starved state.

Addressing a press conference on Sunday, R V Shahi, Union power secretary, who has set a scorching pace for RGPPL to restart the Rs 10,308 crore Dabhol plant, announced at least one power block will be started in May 2006 to meet the peak summer demand. Shahi said that the entire plant will be operational from November 1, 2006, at a full load of 2,148 mw.

Shahi, led a team of high-level officials to the Dabhol plant for the first time following a Bombay High Court order last week transferring assets to RGPPL, said, "The work on the jetty for LNG terminal, critical for the operations, is 95 per cent complete. The breakwater facility, which will not be critical until we expand the capacity of the LNG terminal to 5 million tonne, is also 50 per cent ready."

He said that all the three LNG storage tanks were ready and functional and the plans were afoot to construct a fourth one which will push the terminal's capacity to 7.5 million tonne from the present 5 million tonne.

However, on the issue of tariff which hinges on the price of imported gas, Shahi did not make any commitment, except to say that power will be sold to MSEB at Rs 2.33 per unit.

However, given the international price of gas, it is unlikely that power could be sold at Rs 2.33 without substantial subsidy or "financial re-engineering," as Shahi put it. Either MSEB or the lenders, or both, are expected to absorb some of the cost of power.

Chandan Roy, the newly appointed chairman of RGPPL, said that the company planned to use naphtha stored at the plant during the summer, while clarifying that the plant will be a gas-based one. "We will be utilising 30,000 kilolitre of naphtha stored at the plant from May 2006 onwards and will switch over to gas by the time the plant is ready for full operation."

Close on the heels of Shahi's Sunday visit, GAIL has drawn up a tight schedule for completing the Ratnagiri LNG terminal, a GAIL press release on Monday said.

GAIL has already facilitated reconstitution of the consortia of EPC contractors, namely Besix and Kier for marine works and Whessoe, Punj Lloyd, Aker Kvaerner for LNG terminal works.

Engineers India Ltd (EIL) will be the project management consultant. Tokyo Gas Engineering of Japan and Scott Wilson of the UK, who had earlier worked on the project, are being retained to provide a back-up to EIL's efforts.