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Mumbai, Aug 2 : Controversy and Dabhol project do not seem to live apart for long. This time, the trouble-torn power project, now known as Ratnagiri project, has found itself in the midst of another row. For, what may snowball into a major controversy, Ratnagiri Gas & Power Pvt Ltd (RGPPL) has found that Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation (IOC) have diverted 2.4 million metric standard cubic meter per day (mmscmd) of gas, committed for the project, to their own refineries. By diverting the gas meant for the project, these companies were able to minimise their cost as they could procure gas at $6.1 per million British thermal unit (mmBtu) against naphtha which costs $14 per mmBtu.
Due to the fall in the gas supply, RGPPL is able to produce only 600 mw against 1,900 mw from two phases of 740 mw each. The project had received a commitment of 5.4 mmscmd of gas at the time of it was revived in April 2006. However, it never got the promised volume. The Maharashtra government and MahaVitaran, which is the major procurer of the power from the Dabhol project, have voiced strong opposition against the gas diversion and made a plea for the restoration of the gas supply at a time when the state reeling under acute power shortage.
“The generation has been severely affected due to a lack of adequate gas supply. It has been affected due to tripping of compressor at the Dahej receiving station in Gujarat. Besides, the project never got the committed quantity of 5.4 mmscmd but received only 2.8 mmscmd.
The balance has been diverted by BPCL and IOC for their refineries. This was brought to the petroleum ministry's notice and its intervention sought for the restoration of a total of 5.4 mmscmd of gas,” RGPPL sources told FE.
Power ministry sources said the matter would soon be taken up at the level of the empowered group of ministers led by external affairs minister Pranab Mukherjee.
RGPPL sources said a total of 5 million tonne per annum of gas is required to run the project at its full capacity of 2,184 mw. The petroleum ministry will have to come into the picture to make sure necessary gas supply as the revival of the project has already been delayed due to technical reasons as well. It is projected that the project will be fully commissioned by December...
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