Maharashtra cabinet approved revival of erstwhile Dabhol Power Plant

The cabinet of Maharshtra state chaired by Chief Minister Devendra Fadanvis approved the decision to revive Ratnagiri Gas and Power Private Limited (RGPPL) on October 6, 2015.  The project was known as ‘Dabhol Power Project’ which was built by Dabhol Power Company a joint venture of General Electric and U.S Power company Enron which ceased all its operations in 2001. Construction of the Dabhol Power Plant began in 1992 and was at the time the biggest foreign investment in India. The Dabhol Project was shut down in 2013 because of lack of fuel. Special concessions were also approved by the state cabinet and the project will restart on November 1, 2015.

The state cabinet also approved the guidelines for dividing the plant into two separate companies, as one company would be engaged in the management of the power plant and other company will be engaged in operation of Liquefied Natural Gas (LNG) in order to revive the project. The Ratnagiri Gas Power Private Limited which is a joint venture of public sector enterprise National Thermal Power Corporation Limited (NTPC) and Gas Authority of India Limited (GAIL) will be divided into 2 separate companies the ‘Ratnagiri Power Private’ and ‘Ratnagiri Gas’. The shares of Ratnagiri Power Private will be held by 25.51 % each by NTPC and GAIL while Maharashtra State Electricity Board will hold 13.51% and rest 35% being held by various financial institutions.

The state cabinet also announced waiver of Value Added Tax (VAT), Central Sales Tax (CST) and the Octroi tax levied in the state of Maharashtra. The power plant will produce 500 MW of power of which the Indian Railways is set to buy about 400 MW of the total generation.

https://www.prepsure.com/news/maharashtra-cabinet-approved-revival-of-erstwhile-dabhol-power-plant/