Indicating that it would take some more time to restart the controversial phase I of Dabhol Power project in Maharashtra, Power Minister Anant Geete said in Lok Sabha on Thursday that a detailed assessment of equipment and facilities were yet to be carried out by experts.
Phase-I of the 740-MW project was commissioned in May 1999, but due to disputes between the Dabhol Power Company and the Maharashtra State Electricity Board, the issue was taken to court and supply of power suspended in May 2001.
Responding to a calling attention motion by Bharatiya Janata Party member Kirit Somaiya, the minister said since resolution of legal disputes could take considerable time, the Centre has attempted to facilitate restart of Phase-I with the National Thermal Power Corporation on an interim basis, pending overall restructuring of the Dabhol project and settlement of the legal issues.
Geete said a joint team, which inspected the plant observed that the internal condition of various equipment and facilities could not be ascertained by visual inspection and that a detailed assessment would need to be carried out by a team of experts.
He assured that any proposals sent by various states to meet the power problem would be considered seriously and all possible assistance would be extended to them in this respect.
The Centre was keen that existing shortfall in power supplies were met, Geete stated when pointed out that delay in restarting DPC phase I would result in increase in power cuts and grid failure in various parts of the country, particularly in Maharashtra.
Somaiya said there were daily six to eight hour power cuts in Maharashtra and this had particularly hit the industry besides causing hardships to the citizens.
The minister said the Maharashtra government has conveyed its decision to allow MSEB to purchase power from phase-I of the project at a plant load factor of 83 per cent at the rate of Rs.2.80 per unit.
The rate and quantum of power would be subject to the approval of the Maharashtra Electricity Regulatory Commission.
Outlining further steps that will be taken, he said MSEB and lenders would jointly approach the MERC for approval of the proposed interim tariff, adding, IDBI would have to finalise commercial arrangements with NTPC for its work.
