The Hindu Business Line : Ratnagiri project running short of naphtha

Power trouble
Only 30,000 tonnes of naphtha left
In talks with Indian Oil Corporation
In the process of building a LNG receiving terminal
Government to invite bids for two proposed mega power projects in Orissa and Andhra Pradesh by July

New Delhi , June 13

Naphtha stocks at the Ratnagiri power project in Maharashtra are likely to run out within a month. "We have about 30,000 tonne of naphtha left at the plant. We are in talks with Indian Oil for naphtha supplies until the time we switch over to liquefied natural gas," Power Secretary, Mr R.V. Shahi said on Tuesday, adding that the 2,184 MW Ratnagiri project is trying to negotiate on the price of Naphtha. Mr Shahi was speaking on the sidelines of an industry conference.

The Ratnagiri plant will be able to secure LNG supplies sometime in the first quarter of 2007, he added. Till that time the plant will have to procure naphtha.

The current cost of the power generated by Ratnagiri is Rs 4.75 per unit.

Ratnagiri power project is in the process of building a LNG receiving terminal.

According to industry watchers, post the completion of the terminal LNG will be sourced at a considerably lower price than the current spot price.

Most recently Punj Lloyd Ltd, along with its joint venture partner, Whessoe UK, was awarded the contract for completing the Dabhol LNG terminal by Ratnagiri Gas and Power Private Ltd. The value of the contract is $93.02 million on EPC basis. The contract constitutes EPC package for completion of balance works of the LNG terminal and top of the jetty facilities for Ratnagiri (Dabhol) LNG Terminal project.

Recently the Government and domestic financial institutions negotiated a settlement with foreign equity holders and lenders for the Ratnagiri project.

Ratnagiri had paid Rs 8,485 crore to lenders for takeover of Dabhol power plant in Maharashtra to the lenders of Dabhol Power Corporation (DPC). Ratnagiri Gas and Power Private Ltd, the 50-50 project special purpose vehicle set up by NTPC and GAIL, acquired the secured assets of DPC in October 2005. Meanwhile, speaking on its proposed power projects, Mr Shahi said the Government would invite bids for two proposed mega power projects in Orissa and Andhra Pradesh by July.