Maharashtra to look out for buyers for DPC power

By Mahesh Vijapurkar

MUMBAI, JULY 1. The Maharashtra Government, through the Madhav Godbole Committee, will now look to negotiate with other States if they would like to buy power from the Enron-sponsored Dabhol Power Company, whose turbines have been switched off since May 25.

If the Centre ``intervenes more decisively'', Dr. Godbole - who heads a panel to beat down the tariff of DPC power - conceded, then ``we would be able to resolve the issue sooner''. But it has conveyed that ``it would only use its good offices''. Therefore, the next step would be to work out a mechanism for the DPC/Maharashtra State Electricity Board (MSEB) to deal with the States.

Hitherto, the route sought to be taken was that the Centre nominate an agency, like the Power Trading Corporation, which would pick up the power from DPC, sell it to the States, collect bills and pay the independent power producer. This was because the MSEB did not want to deal directly and be saddled with unpaid bills of the buyers, hurting its delicate financial health.

Sources said the panel's move to deal directly with prospective buyers would be a ``long-haul step'' unlikely to succeed. The MSEB would be happier if the Industrial Development Bank of India, which leads a consortium of lenders here, picks up the stake and runs it through a contractor, preferably the National Thermal Power Corporation.

After a sitting of the panel on Saturday, where it interfaced with the DPC, Dr. Godbole told correspondents that all States which want to buy power from the DPC would be met collectively on July 26 and a day after the DPC and the panel meet. ``We need to find out their demand and the mode of payment''.

As of now, about 700 MW of power from the DPC - about a third of its total generating capacity of both phases on the Konkan coast - is the quantum that some States, notably Karnataka, Delhi, Gujarat, Haryana and Madhya Pradesh, may want to pick up, according to what has been conveyed to the Central Electricity Authority. According to Dr. Godbole, the panel would not restrict its interface to only these States but may poll others as well to see that there is a larger canvas before it since the availability of power is much higher than what these States have indicated to be their requirement. ``We will talk to as many States as possible''.

Before this happens, the panel expects to firm up some proposals in about three weeks through internal meetings. The DPC itself put forward some proposals but it remains resolute in the stand that if power is to be picked up at reduced prices, then the off- take has to be at 90 per cent of the total capacity of the plant.

The interaction, Dr. Godbole said, did not get influenced by any rancour.

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