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DPC enters into pact with IOC for Naphtha procurement
Our Corporate Bureau
Mumbai, Jan 13: The Dabhol Power Company (DPC), which has come under severe attack for the sale of power at "costly" tariffs to the loss-making Maharashtra State Electricity Board, on Saturday signed an agreement with the state-run Indian Oil Corporation (IOC) for the procurement of 1.2 million metric tonne of naphtha during this calender year at around Rs 11,050 per MT. The naphtha price comprises $175 per MT FOB, 21.8 per cent of customs duty, 5.4 per cent of sales tax and $18.87 of premium. DPC which had entered into an agreement for the supply of naphtha with Glencore had quoted the price of Rs 10,050 per MT.DPC senior vice president Mukesh Tyagi who inked an agreement with the IOC's executive director A Banerjee told The Financial Express that "the IOC has matched significantly by lowering its price to make it internationally competitive." He further added that "we expect that this contract would be smoothly implemented by maintaining an uninterrupted fuel supply to Dabhol project and we expect to jointly address hedging issue to provide cheap fuel to MSEB and consumers of Maharashtra." Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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