Dabhol plant in hibernation from July 1

With the Maharashtra State Electricity Board (MSEB) unwilling to buy its costly power and its naphtha stock exhausted, Ratnagiri Gas and Power Ltd's 740-Mw Dabhol plant will stop generating electricity for three months from July 1.

Ever since the Dabhol plant resumed operations in May, MSEB has been buying power from it at Rs 4.30 a unit, though the original price had been fixed at Rs 2.30 per unit.

In comparison, MSEB can buy power from its own hydel plants, which are set to ramp up production with the onset of monsoon rains, at around Rs 2.00 a unit.

"The Dabhol plant is supplying power to Maharashtra for meeting the state's peak demand. With the monsoon setting in, the state's hydel power plants will meet that demand for the next three months," a power ministry official told Business Standard.

The Dabhol plant will resume generation in October, and may run on naphtha or gas, whichever is available at that time.

Around 95 per cent of the power generated by the Dabhol plant is supplied to Maharashtra.