Maharashtra to buy Dabhol power at Rs 5/unit

The Maharashtra government has agreed to buy electricity from the Dabhol power project at Rs 5.01 per unit, and the plant is likely to be re-started by the middle of next month.

Ratnagiri Gas and Power, the new owner of the Dabhol project, and Maharashtra State Electricity Distribution Company is likely to sign an agreement for the purpose tomorrow.

Maharashtra will buy up to 700 megawatt from block II of the plant, which will be run on imported naptha.

The state has also agreed to buy power even in case the tariff crossed Rs 5.50 per unit.