In an attempt to revive the now defunct 1967-MW Dabhol power project, Ratnagiri Gas and Power Ltd (RGPPL) is in final stages of signing a short-term power purchase agreement with the Railways to supply at least 500 MW to the national transporter.
According to sources close to the development, the PPA is expected to be signed in one or two days, and before July 5 it plans to restart production. The plant has been shut since 2013 for want of domestic gas supplies.
Initially, the railways may sign a short-term PPA for around four months, and later it may increase the period, the sources said.
Apart from signing a PPA with the Railways, the company is also looking at reviving supply agreements with Dadra & Nagar Haveli, Daman & Diu and also Goa.
The plant was earlier supplying 95 per cent of generation to Maharashtra, 2 per cent each to Dadra & Nagar Haveli and Daman & Diu and the remaining 1 per cent to Goa.
RGPPL, a joint venture between gas utility GAIL and NTPC, shut the Dabhol plant after gas supplies from Reliance Industries KG-D6 fields were stopped.
GAIL and NTPC hold 32.9 per cent stake each in RGPPL while the Maharashtra government owns 17.4 per cent stake.
"Since the talks were on for quite some time, all the machines have been revived for generation. To run the plant at full capacity, the company needs 8.5 mmscmd gas of which 7.6 mmscmd should have come from Reliance while the remaining from ONGC through GAIL. Since it has started getting GAIL's share, the plant will be able to generate at least 500 mw," the source said.
Besides, RGPPL is also looking at procuring imported gas. "With the domestic and imported gas, the company will be in a position to run the plant in full capacity," the source said.