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NTPC agrees to operate Dabhol phase-I

State-run National Thermal Power Corporation has agreed to operate the 740-MW phase-I of the Dabhol Power Project, Rajya Sabha was informed on Wednesday.

"NTPC has agreed to act as operation and maintenance contractor for running phase-I," Power Minister Anant G Geete said in a written reply in the Upper House of Parliament in New Delhi.

The Government of Maharashtra, he said, has agreed to recommence off-take of entire power from the existing phase-I power station with "certain conditions." He did not elaborate on the conditions put by the state government.

Financial institutions having stakes in DPC, Maharashtra government and sponsors of Dabhol Power Company have "given certain proposals for revival of the project, which includes grant of certain reliefs/concessions by various agencies such as Government of Maharashtra/Maharashtra State Electricity Board, project sponsors, offshore and onshore lenders as well as Government of India," he said.

"Any revival scheme for DPC would come as a comprehensive package and would have to resolve legal, financial and technical issues," he said adding an interim revival package for restarting Phase-I is being worked out.

The $3-billion project is rusting for over a year after Enron promoted DPC shut down operation of phase-I and stopped construction on the nearly complete 1444-MW phase-II following a payment dispute with its sole customer - MSEB.

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