BUSINESS

Ratnagiri power may cost Rs 1.85 more

By Gayatri Ramanathan in Mumbai
September 06, 2006 12:19 IST
Ratnagiri Gas and Power has proposed to sell power to Maharashtra Electricity Distribution Company at Rs 6.10 per unit, which is Rs 1.85 higher than the rate it charged before lack of naphtha forced a shutdown of the plant.

RGPPL's latest proposal is pending with the Central Electricity Regulatory Commission for tariff clearance.

Once CERC clears the proposal, it will then be taken up by the Maharashtra Electricity Regulatory Commission, which will decide how much power MSEDCL can buy at the approved tariff.

A senior MSEDCL official pointed out that with MERC not approving the summer buys from RGPPL (formerly Dabhol), the quantum of power that it may be allowed to buy from Dabhol may not be much.

This would seriously impact RGPPL, which has no committed offtakers for power. Though it is willing to sell power to anybody, MSEDCL is the sole buyer from RGPPL.

MSEDCL is hoping that the amount it has spent on buying Dabhol power will get covered in the current annual revenue requirement being heard by MERC.

However, Dabhol is not the most expensive power that Mahadiscom has bought. It has bought power from traders at prices above Rs 5.50 - from NTPC's gas-based Kawas plant at Rs 7 and from captive sources in Pune at Rs 10-11.

Even with the Centre exempting Dabhol's naphtha imports from all duties, the price of power remains high as naphtha prices are rising. Currently it is ruling at Rs 3,2182.78 per metric tonne.

The plant is expected to resume operations by early October once the tariff and quantum of power is decided by the regulators.
Gayatri Ramanathan in Mumbai
Source: PTI
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