MSEB sources said that these figures were arrived at on the basis of the existing foreign-exchange and oil rates. The sources admitted that the amount was high following a slump in the rupee, as during renogotiations for the Dabhol power project, the exchage rate was fixed at Rs 31.50.

Of the 740mw, 22mw will be auxilliary consumption, and of the exportable power of 718mw, the Dabhol Power Company will sell 650mw to MSEB. The power station will maintain an 86 per cent availability during the monsoon season and 92 per cent availability during the remaining part of the year.

MSEB, which holds 30 per cent equity in Dabhol Power Company, is confident of recovering Rs150 crore through the monthly revenue generation of about Rs 800 crore.

In addition, more revenue will be mopped up through selling additional power, mainly to the industrial and commercial consumers. So far, power connections to meet the additional demand of 450mw have been granted. "We hope to get money from these consumers to make the payment of Rs 150 crore," the sources added.

MSEB is, however, worried about the recent state cabinet's decision to drastically cut power tariff for over 22 lakh farmers. Last year, MSEB had hiked the power tariff at the average 7 per cent, and was expected to mobilise an additional Rs 450 crore by March 31 this year.

The cabinet's decision, which will come into effect from April 1, will add a Rs 181-crore burden. The government has also decided to waive the outstanding bills of the farmers if they pay minimum 50 per cent of their dues as on September 30, 1998, by end-May this year.

The sources said that the per-unit tariff purchased from the Dabhol power project willrange between Rs 2.90 and Rs 3. Dabhol Power Company got a shot in the arm when the Centre agreed to its demand that the counter-guarantee given for the first phase would remain intact.

The sources added that the financial closure for the second phase of the 1,444mw project with a capital outlay of over $1.8 billion would not be possible before March 31. It will be done by April or June. The company hopes to commission the phase II in 33 months after financial close.