Chavan to talk Dabhol deal

Whether Ratnagiri Gas & Power Private Ltd (RGPPL) manages to secure a gas from Oman LNG for it's Dabhol plant depends upon how skillfully minister of state in the Prime Minister's Office (PMO) Prithviraj Chavan sorts out the issue of $ 1.1 billion "debt" the erstwhile Dabhol Power Company (DPC) "owes" to Oman LNG.

Chavan who holds the additional charge of power ministry, has flown to Oman on Friday evening after a visit to Dabhol. RGPPL authorities are making all out efforts to keep the May deadline for starting power production from the plant.

When RGPPL started scouting for the gas all over the world after the settlement of all outstanding issues with GE and Bechtel, Oman LNG was taken aback and dashed off a protest letter to the Prime Minister Manmohan Singh pointing out that, DPC owed them $ 1.1 billion.

And despite this, RGPPL was going ahead with it's search for gas without keeping Oman LNG in the loop.