Business Standard

MERC issues regulations to cover the revived Dabhol project

Transmission charges and losses for generation from the e bid RLNG will be exempted to keep tariff at Rs 4.75 per unit

MERC issues regulations to cover Dabhol project revived after procurement of gas through reverse bidding

Sanjay Jog Mumbai
The Maharashtra Electricity Regulatory Commission has waived transmission charges to push the Centre’s scheme for reviving power plants through imported regasified liquefied natural gas.

The MERC’s regulations will be applicable to the 1,967 MW Dabhol power project, which was revived on November 21 after being shut for 23 months for want of gas. Ratnagiri Gas & Power resumed generation of 300 MW for supply to the railways.

The MERC’s regulations came into effect last Saturday. Other states like Gujarat, Andhra Pradesh and Telangana, which house stranded gas-based power projects, may soon follow suit.

“These regulations will extend to the whole of Maharashtra, including the Dabhol power project, which was revived last Saturday,’’ an MERC official told Business Standard.
 

There will be no charges for the use of the intra-state transmission system on incremental generation from regasified LNG for 2015-16 and 2016-17. The exemption is among a slew of sops being offered to maintain the tariff at Rs 4.75 per unit for the Dabhol power project and other stranded plants.

The Maharashtra government has already waived transmission charges on for Dabhol power supply to the railways.

The official said users that shared costs of intra-state transmission would continue to pay their share as determined by the MERC.

The central scheme, launched in March, plans to supply imported reasified LNG to stranded power plants. Of the country’s 27,123 MW gas-based power capacity, 14,305 MW had no supply of domestic gas while another 9,845 MW received gas that allowed plants to run at less than a third of capacity.

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First Published: Nov 24 2015 | 1:20 AM IST

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