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DPC top priority; ministry open to policy change: Geete

Centre will accord top priority to restart the contentious Dabhol power project, promoted by bankrupt US energy giant Enron, for which 'right steps' would be taken within two months, new Power Minister Minister Anant G Geete said in New Delhi on Tuesday.

"Dabhol power project, in which over Rs 9,000 crore (Rs 90 billion) have been invested, is lying idle for more than 18 months. We are discussing the matter with the state (Maharashtra) government and hope to see some solution in the next two months," Geete told reporters immediately after taking over the charge of the power ministry.

Maharashtra State Electricity Board, the Maharashtra government and IDBI-led consortium of financial institutions should decide amongst themselves that at what rate electricity has to be sold or purchased by the respective parties, Geete added.

The new minister did not elaborate but said he was open to change in the policy, pursued by the former minister Suresh Prabhu, if required for the growth of the power sector.

According to information available, Geete said MSEB and IDBI along with the state government have held two-three rounds of meetings and once they decide on the tariff issue a concrete decision would be taken.

Asked whether National Thermal Power Corporation would be asked to operate the plant, Geete said, "this will depend on the lenders, they may ask NTPC or someone else to operate the plant."

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