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NTPC could restart DPC plant

India's most senior power official said on Wednesday he believed that the government would be able to get a state utility to restart Enron's $2.9-billion power plant, which has been idle for a year.

Power secretary R V Shahi told Reuters in an interview that the National Thermal Power Corp could operate the plant. This would prevent it from decay and give its lenders some return on the investment, he said.

"Though NTPC was initially reluctant about it, it should be possible to persuade NTPC to run the plant on a contract basis (with a) management fee, details of which will have to be worked out through talks," he said.

The plant has been idle since the Maharashtra State Electricity Board, its lone customer, stopped buying power after a billing dispute. But last week the state government, which owns the utility allowed MSEB to resume buying electricity from Dabhol's first phase which can generate 740 MW.

Indian lenders want a higher price than what MSEB has offered but Shahi said the issue could be resolved. "I think the decision of the Maharashtra government to take power from phase-1 is a positive decision. Details can always be worked out," he said.

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