While one block of 740 MW generation capacity, which is already complete, would produce power from naphtha from next month, two more blocks of similar capacities are likely to come up in May 2007 and December 2007.

The pipeline connecting Petronet LNG Ltd's [Get Quote] Dahej LNG import terminal to Dabhol would be completed by March 2007 and Petronet is likely to begin short term import of gas for the power plant sometime in mid-2007, official sources said.

Natural gas would be transported to the plant through the pipeline initially as the LNG receipt facility at Dabhol, although complete, cannot receive LNG tankers due to absence of a breakwater facility.

The breakwater would be built by the third quarter of 2009 when Ratnagiri Gas and Power Pvt Ltd, the new owners of the Dabhol plant, are likely to tie-up long term LNG supplies.

The EGoM is headed by Defence Minister Pranab Mukherjee and includes Power Minster Sushilkumar Shinde, Agriculture Minister Sharad Pawar, Petroleum Minister Murli Deora and Planning Commission Deputy Chairman Montek Singh Ahluwalia. Block-II, which generated electricity from naphtha during May-June this year, is unlikely to be restarted this month as expected earlier.

The Maharashtra government and RGPPL are yet to agree on a tariff for the power to be generated from the unit, which is now likely to be restarted only in November.

The EGoM was also informed of the visit of the Qatar finance minister to India recently, during which New Delhi sought additional LNG supplies from the west Asian nation to start the project, the sources added.