Dabhol to resume power generation

Dabhol to resume power generation

The Indian power ministry has confirmed that the troubled Dabhol Power Plant will resume production on May 1 this year. It would be using naphtha for fuel and the cost of generation of power at this plant would be lower than Rs 5.50 per unit that Maharashtra pays for overdrawing electricity from the Central Grid.

Power Minister Sushil kumar Shinde said in a statement: “Due to unavailability of gas, we have no option, but to run the project on Naphtha, which is costlier than LNG. However, considering the present price of Rs 5.50 per unit, which the state is paying for overdrawing from the grid, this cost would be lesser.”

The central government had earlier planned to restart production at this plant by December last year but the project was delayed by a bit. This would bring a lot of relief to the people of Maharashtra who continue to face shortage of power on a daily basis. For now, only the first phase with a generation capacity of 740 mw would resume production.