Friday, September 15 2006 16:20 Hrs (IST) - World Time -

New Delhi: Ratnagiri Gas and Power Limited, formerly known as Dabhol Power Company, will begin generating 740 MW of power using imported naphtha from October, Power Secretary R.V. Shahi said here today (Sept 15,2006) .

The power plant had been shut down after generating 740 MW of power in May and June, to meet Maharashtra's energy requirement, as it ran out of fuel stocks. "We have received a request from the Maharashtra government that it would be requiring additional power in October and have decided to resume operation of block two of the plant from October using imported fuel," Shahi said.

He said the Indian Oil Corporation (IOC) had been asked to import the required quantity of naphtha fuel.

Responding to questions why the IOC was not asked to supply its own production of naphtha, Shahi said imported fuel would be five percent cheaper as domestic fuel is supplied at import parity price.

In the case of imported fuel, the finance ministry has granted duty concession at the request of power ministry, he added.

The cost of 'naphtha power' would work out to Rs.6 to Rs.6.25 per unit as against the Rs.4.25 Maharashtra paid when block two of Ratnagiri was revived in May.

The full operation of the 2,180 MW Ratnagiri power plant is expected only by March 2007, when it is expected to receive gas supply.