Date:02/01/2008 URL: http://www.thehindu.com/2008/01/02/stories/2008010255421400.htm

National

EGOM agrees to increase capacity of Dabhol power plant

Special Correspondent

— Photo: PTI

LOOKING AT EXPANSION: Union Ministers Sharad Pawar (Agriculture), Sushilkumar Shinde (Energy), Pranab Mukherjee (External Affairs) and Maharashtra Chief Minister Vilasrao Deshmukh at the Dabhol power plant on Monday.

MUMBAI: The Empowered Group of Ministers (EGOM) has in principle approved an increase in the capacity of the Dabhol power plant in Ratnagiri district in Maharashtra and make efforts to raise it to 5,000 MW. This decision was taken by the EGOM headed by External Affairs Minister Pranab Mukherjee which visited the plant on Monday.

Mr. Mukherjee said efforts would be made on an international level to procure the gas needed for the expansion. The plant, now being run by the Ratnagiri Gas and Power Private Limited (RGPPL), is producing about 1,300 MW. It is expected to go up to its full capacity of 2,150 MW by March probably, depending on the fuel tie-up.

Official sources said the decision to increase the capacity would have to be approved formally in New Delhi. Mr. Mukherjee visited the plant being run on Liquefied Natural Gas (LNG) along with Union Agriculture Minister Sharad Pawar, Maharashtra Chief Minister Vilasrao Deshmukh, Union Power Minister Sushil Kumar Shinde and Maharashtra Power Minister Dilip Walse Patil. He also held a meeting at the site to discuss issues, including the problems in fully commissioning the plant.

While no extra equipment or facilities would be needed for the project expansion, work on the breakwater wall and the LNG jetty will be given priority. Banks and financial institutions would be approached for the project expansion. Mr. Mukherjee said increasing the capacity of the project would not result in any environmental impact on the horticulture of the region nor would it require land.

Maharashtra finally is relying on the RGPPL to pull the State out of the power crisis it is facing. The idea of doubling the capacity of the plant has been mooted since some time and finally the EGOM has given it the go-ahead. While the state has signed a memorandum of understanding with eight independent power producers, only two of them are showing any progress.

Recently, the time frame for them to commission the projects was extended by the State government.

Land acquisition for the projects and environmental impact of coal-based plants has led to many protests in the State.

Besides, the Ultra Mega Power Plant in Ghirye has been shelved because of problems of land acquisition.

However, at Dabhol the question of assured fuel supply has to be addressed.