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Home  » Business » Dabhol: Govt in talks with Oman

Dabhol: Govt in talks with Oman

Source: PTI
January 27, 2006 20:31 IST
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The Centre on Friday said it was on a high-level of discussion with Sultanate of Oman for a proposed gas purchase agreement for the Dabhol power project to meet the May 2006 deadline of re-starting production.

"Our intention is to get the plant in running order," Minister of State in Prime Minister's Office Prithviraj Chavan said in Mumbai, adding he was leaving for Oman for expediting the deal.

Refusing to disclose the actual worth of the deal, the minister said the government was looking for supply of 0.7 MMTPA to start the project.

"Initially, we are looking for a supply of 0.7 MMTPA of gas which would rise to about 2.1 MMTPA by October 2006 when the entire plant becomes operational," he said.

He maintained that if the gas purchase deal takes time, the plant could be run on peak-load basis with liquid fuel.

The minister, however, said the liquid fuel was a temporary solution while efforts were towards finalising a long-term fuel supply agreement.

Asked about possible increase of cost burden on consumers, the minister said priority was to re-start the project as huge central investment has been made into the project.

"The cost could be worked out later," he said. Earlier, the power ministry had asked Ratnagiri Gas and Power Private Ltd to start first block of 740 MW of Dabhol project by May in order to give necessary relief to Maharashtra, reeling under a daily power shortfall of 4200 MW. The gas-based project is facing a short supply of fuel.

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