25 July 2005 – The 2184 MW Dabhol Power Plant could be restarted in one year provided all the legal and financial formalities were completed and the plant was handed over to the NTPC-GAIL-promoted Special Purpose Vehicle (SPV), NTPC chairman and managing director C P Jain said.
“To restart the phase I of the power plant would take about a year after the plant was handed over to SPV Ratnagiri Gas and Power (P) Ltd”, Jain said here Saturday.
On Friday State-run Gail (India) Ltd approved a Rs 5bn ($115m) investment in Ratnagiri Gas and Power Pvt Ltd, the special purpose vehicle created to restart Dabhol power plant in Ratnagiri, Maharashtra.
Settlements have now been reached with all the lenders along with previous owners Bechtel and GE.
“The first phase would be started with gas only and with a gap of two to three months, the work for second and third phase would commence,” Jain said.
NTPC has already approved an investment of Rs 5 billion in RGPPL. Following the transfer of assets through the debt recovery tribunal route RGPPL will undertake construction and commissioning activities of the power plant and the LNG
terminal with a target of completion by the second half of 2006.
GAIL would source the LNG required to run the power plant while NTPC would operate the plant and negotiate the power purchase agreement with Maharashtra electricity utilities.
The gas monolith has also stepped up efforts to source LNG from Qatar, Iran, Oman, Abu Dhabi, Malaysia, Indonesia, Australia, Brunei, Egypt and Algeria.
The company would complete the remaining works of the LNG terminal and also operate it. The terminal will have a capacity of 5 mmtpa, of which 2.1 mmtpa would be required for the Dabhol plant. The remaining LNG could be sold to other power