PTI
 
Mumbai, Apr 30: Over five years after it was shut down, stirring a national debate over liberalization of India's power sector, the controversial Dabhol power project is all set to resume generation from tomorrow.

Now re-christened 'Ratnagiri Gas and Power Pvt Ltd,' the first phase of the plant with a generation capacity of 740 MW would re-start production using Naphtha for fuel.

"We are hopeful to commence our activities by May 1... final countdown is on," RGPPL CEO Chandan Roy told PTI here.

The project, shut down in May 2001 following a power tariff dispute between its promoter Enron Corporation and sole customer, the Maharashtra state power utility, is likely to begin generation from its 740 MW block II for six-eight hours a day.

The project has a total generation capacity of 2,184 MW.

"We presently have a Naphtha stock of around 38,000 kilolitres. We expect to receive another 25,000 kilolitres in couple of days, whereby we would be able to utilise this fuel for next 50-55 days," Roy added.

The project revival also involves restructuring its unused Single Buoy Mooring system, an import/export medium for collection and delivery of oil, which is located at a distance from the shore.

The government has initialized this Naphtha-based short revival of the project to overcome severe power crunch in various parts of the state, which faces a shortage of about 3,000 MW of power every day and witnesses up to 12 hours electricity outage every day.

The Centre is in talks with five countries, including Qatar, for supplying gas to the Dabhol Power project and would be generating electricity from its total capacity of 2,015 MW by next year, a top official said today.

"We are confident of completing the gas supply talks by next few months...Negotiations are already in place with five countries including Qatar. We will be running the total project capacity of 2,015 mw by the beginning of next year," Petroleum secretary M S Srinivasan told reporters here.