The empowered group of ministers (EGoM) on the Dabhol power project discussed various issues at its maiden meeting on Monday, including stuck compensation claims.
Chaired by Finance Minister Pranab Mukherjee, it debated the non-payment of Rs 470 crore by wtate insurance companies to Ratnagiri Gas and Power Pvt Ltd (RGPPL), now the formal name of the project. This is for compensation claims on repair and restoration of equipment. Other issues were more gas supply from the KG-D6 field, from the present 5.7 mscmd to 7.5 mcmd from April 2010 and then 8.5 mscmd from April 2011.
Besides, the timely commissioning of Phase III of the project and thereby complete revival of the project during April-June next year was also discussed at the meeting.
The EGoM was quite categorical in asking the RGPPL not to miss the proposed deadline for the completion of Phase III to achieve generation of 1,850 to 1,900 Mw.
The meeting took place at a time when the project is generating 930 Mw and last week Maharashtra Electricity Regulatory Commission allowed MahaVitaran, the sole procurer of power, to recover additional charge from its consumers to the extent of Rs 785.90 crore during December 09-March 10 at 35.28 paise per unit.
This was necessitated following the order issued by the Appellate Tribunal of Electricity.
RGPPL officials said, “The EGoM' s intervention was sought for an early payment of Rs 477 crore from the state-run insurance companies — National Insurance Company and Oriental Insurance Company — towards compensation for the repairs and restoration of turbines and rotar. So far, insurance companies have paid only Rs 58 crore of the total Rs 535 crore. An early payment is needed. The repairs and restoration work is still on. However, the signing of comprehensive service agreement with GE, which has supplied 9FA turbine for the project has given a major relief.”
Moreover, the EGoM also took a review of K-G D-6 gas supply for the project. RIL has increased the K-G D-6 gas allocation to RGPPL from 2.7 million standard cubic meters per day (mscmd) to 5.67 mscmd from October 1.
“However, RGPPL called upon the EGoM's help for increasing gas supply to 7.5 mmscmd from April 2010 and 8.5 mmscmd from April 2011 when the project is expected to achieve the power generation of 1,850 to 1,900 Mw at the 90 per cent plant load factor. The gas is supplied at the EGoM fixed price of $4.20 per million british thermal unit,” RGPPL official said.
