The Dabhol plant will need a further infusion of Rs 10,000 crore (Rs 100 billion or $225 million) before it becomes fully operational.

According to an internal estimate worked out by GAIL India [Get Quote], it needs to invest this amount to get the LNG jetty, the regassification plant and the remaining two blocks in working order.

Of this, more than half will be needed for completing the marine facilities at the plant which include LNG jetty and three storage tanks.

Nearly Rs 5600 crore (Rs 56 billion) is expected to be spent on marine facilities alone, while around Rs 5000 crore (Rs 50 billion) is expected to be spent on refurbishing blocks 1 and 3, including regular overhaul of block 1.

A senior state government source said the government is already looking at tying up requisite finance for completing the work on schedule.

The government has announced that by December this year all the three blocks will be operational. When fully operational the plant has a capacity of 2184 mw.

Currently, with only block 2, it is producing between 160 and 300 mw, from the naphtha stored at the plant. However, with the Ratnagiri Gas and Power unable to source further naphtha that too could cease.

When RGPPL, promoted jointly by GAIL and NTPC, took over the plant in October 2005, they found that the LNG terminal and the marine facilities were around 75 per cent complete, with the breakwater being around 55 per cent complete.

The three LNG storage tanks were found to be 90, 80 and 75 per complete, respectively. The regassification plant was 85 per cent complete. The GAIL team also found that the channel for the LNG terminal had to be re-dredged completely as it had silted up from disuse.

GAIL estimates that it will take them around 11 months to complete the regassification plant and the storage tanks. The LNG jetty, it estimates, will be ready for use by April 2009.

The jetty has to be completed by April 2007 and tug berth by May 2007. The channel has to be dredged by end of December and the breakwater completed by April 2009.

The GAIL team found that the block 1 needed extensive repairs, in addition to regular overhaul as the plant had been run by Enron for two years.

The GAIL team found that heat recovery steam generators at the plant were in a bad shape and the hot path components need replacement 'for completion of recommended life'.

An Inlet air cooling chiller plant at block 1 as well as a transmission line for evacuating power from the plant, need to be installed.

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