Shortage of gas forces Ratnagiri Gas & Power to shut down operations
Moneylife Digital Team 11 February 2013

Due to shortage of gas, the company—promoted mainly by NTPC and GAIL—has been generating only half of the installed capacity of 1,967 MW for than two years

Ratnagiri Gas and Power, formerly known as Dabhol Power, said it has completely shut down power generation for want of gas since Thursday.

 

“We have stopped generation from all the three units as we are not receiving gas from any of our sources—Reliance and ONGC,” a company spokesperson said.

 

Due to shortage of gas, the company—promoted mainly by NTPC and GAIL—has been generating only half of the installed capacity of 1,967 MW for than two years.

 

“With the available gas, we could run only one unit, which too was nearly 50% lower than its capacity at 200-245 MW. But since Wednesday, we are not receiving gas from any of the sources,” he said.

 

To run the project at full capacity, the company needs 8.5 mmscmd (million metric standard cubic meter per day) of gas, of which 7.6 mmscmd should come from Reliance Industries and the remaining from ONGC through GAIL.

 

Since last two years, the company is facing the issue of gas shortage, the spokesperson said, adding “in FY12, we received only 6.6 mmscmd gas and in FY13 till January, we received only 3.2 mmscmd. This has resulted in a generation loss of around 7,500 million units.”

 

“Imported gas is very costly. If we use this gas, the generation cost will increase and there will be no takers for the power. Power generated from coal is available at Rs2.50-Rs3 per unit. If we use the imported gas, the power will be as costly as Rs10 per unit," the official said.

 

Currently, the plant supplies 95% of the power generated to Maharashtra and 2% each to Dadra and Nagar Haveli and Daman and Diu, and 1% to Goa.

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