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Karnataka ready to buy DPC power at Rs 2.60/unit

The Karnataka government said on Thursday that it is ready to buy power from Enron-promoted Dabhol Power Company's 1444 MW second-phase, but only at a 'competitive tariff of Rs 2.50 to Rs 2.60 per unit'.

"DPC's tariff should be competitive to the variable charges of independent power producers in Karnataka," V P Baligar, chairman and managing director of Karnataka Power Transmission Corporation Ltd, said after a meeting with the Godbole panel which is holding discussions with states on the offtake of power from DPC' second phase.

He said: "DPC will have to match our summer and winter peak demand, which ranges from January to May."

The state would not provide any escrow or any deemed charges to the multinational, but was ready to extend a letter of credit, he informed the panel.

"We do not want to be in trouble like Maharashtra as Karnataka has never been a defaulter in its payments," he said.

"A proposal for a possible transmission set-up was also discussed with the panel and they informed us that such a line could be put in place from Kolhapur or Chandrapur in Maharashtra to Dharwad in Karnataka," the CMD said.

"The cost of this inter-regional transmission line should be borne by both the states," Baligar added.

The Godbole panel is meeting various states to discuss the offtake of power from DPC's second phase. Madhav Godbole, Maharashtra State Electricity Board chairman V Bansal, state energy secretary V Lal and PowerGrid Corporation of India representatives were present during the meeting.

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