India’s NTPC may operate Dabhol

21 November 2002 – India’s idle Dabhol power plant could re-commence electricity production operated by the state-owned National Thermal Power Corporation, the Press Trust of India said Wednesday.

It reported that the Federal government was working on a package that would see the resolution of financial, legal and technical issues in order to revive the first 740 MW phase of the power plant.

India’s Power Minister Anant Geete said in reply to a written question in the upper house of parliament, “NTPC has agreed to act as operation and maintenance contractor for running phase one.” Geete said the government of the western Maharashtra state had agreed to allow the state electricity board to buy the entire power output from the existing unit under “certain conditions”, but did not elaborate

In July, Maharashtra, one of India’s most industrialised states and home to Dabhol, approved a proposal allowing MSEB to buy power from Dabhol at 2.80 rupees (5.8 cents) per unit.

The Dabhol Power Company is being controlled by the group of international and domestic lenders lead by the Industrial Development Bank who have lent $1.9bn to the project. Once hailed as India’s largest foreign investment project, Dabhol ceased production in July 2001 after the MSEB fell behind with power payments – just ahead of the completion of the 1444 second stage.

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