The ministry of finance has estimated that about Rs 1,800 crore (Rs 18 billion) would be needed to restart the Dabhol Power plant, lying idle for the past three years.
It has asked the power ministry to take up this (cost) aspect at the next meeting of the empowered Group of Ministers, which is looking into ways to restart the plant.
This (about Rs 1800 crore) is required to complete the liquified natural gas plant, completion of Phase-II and payment of contractual charges to GE and Bechtel, the ministry of finance said in a communication to the power ministry.
Besides the financial assessment, the ministry has also estimated that it would take 18 months to complete all these facilities before generating power from the plant.
According to the finance ministry, "it is not certain that an early operation of Phase-I can be viable as this may require running the plant on naphtha. The ministry of power may like to advise the empowered GoM on this aspect."
"If the plant is to be run on LNG, both Phase-I, Phase-II and LNG plant and breakwater will have to be completed. The approximate time required for power to flow will be 18 months from the start of construction as estimated by M/s NM Rothschild," the finance ministry said.
Thus, an early solution of the troubled DPC looks difficult especially in the backdrop of GE and Bechtel threatening to walk out of the entire deal.
The ministry has also raised certain apprehensions, saying, "it is not clear as to who will put in this money."
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