NTPC agrees to operate Dabhol phase-I

NEW DELHI: State-run National Thermal Power Corporation (NTPC) has agreed to operate 740 MW phase-I of the Dabhol Power Project, Rajya Sabha was informed on Wednesday.
"NTPC has agreed to act as operation and maintenance contractor for running phase-I," Power Minister Anant G Geete said in a written reply in the Upper House of Parliament here.
The Maharashtra government, he said, has agreed to recommence off-take of entire power from the existing phase-I power station with "certain conditions".He did not elaborate on the conditions put by the state government.
Indian financial institutions having stakes in Dabhol power project, govenment of Maharashtra and sponsors of Dabhol Power Company have "given certain proposals for revival of the project which includes grant of certain reliefs/concessions by varoius agencies such as Government of Maharashtra/Maharashtra State Electricity Board, project sponsors, offshore and onshore lenders as well as Government of India," he said.
"Any scheme finalised for revival of the Dabhol project would come as a comprehensive package and would have to resolve legal, financial and technical issues involved," he said adding an interim revival package for restarting phase-I is being worked out.
The $2.9 billion project is rusting for over a year after Enron promoted DPC shut down operation of 740 MW phase-I and stopped construction on the nearly complete 1444 MW phase-II following a payment dispute with its sole customer - MSEB.