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Maharashtra to buy DPC power at Rs 2.80/unit

In an effort to tide over acute energy crisis in Maharashtra, the State Cabinet on Thursday cleared the decks for the purchase of power from the idle Dabhol Power Company's 658-mw phase one for Rs 2.80 per unit.

According to recommendations of the expert committee on energy set up under the chairmanship of chief secretary Ajit Nimbalkar, the state electricity board (MSEB) will buy DPC power at 83 per cent plant load factor with a "pass through component" on the naphtha prices, an official release said in Mumbai.

The Nimbalkar committee has suggested the government to inform the Industrial Development Bank of India-led lenders of DPC on their decision to procure power.

"IDBI should also be requested to restart generation of the phase one "at the earliest" with Union power ministry's help", it said.

Chief Minister Vilasrao Deshmukh did not address the regular post Cabinet meeting press conference as he left for Mount Abu to attend a Congress party CMs conclave.

Last month, the high powered co-ordination committee of the ruling Democratic Front had approved purchase of DPC power at the stipulated rate on a "as and when" basis for one year.

Sources said that MSEB would now approach state regulatory commission for approval of Rs 2.80 per unit rate.

This decision comes after several months of resistance from the state government to buy DPC power. Earlier, it had approved a rate o unit, which was promptly rejected by IDBI stating that it was too low and did not even factor in the generation costs.

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