Estimating a revenue of at least Rs 200 crore from the Centre in future, the Maharashtra government has given its nod to de-merge Ratnagiri Gas and Power Private Limited (RGPPL) into two independent companies — electricity generation centre and Regassified Liquefied Natural Gas (RLNG) terminal.
“The decision was taken at a Cabinet meeting chaired by CM Devendra Fadnavis. The RGPPL has been shut since November 2013 owing to unavailability of gas. The state government has 13 per cent share in the gas-based power plant,” energy minister Chandrashekhar Bawankule said.
After the de-merger of the project, the state expects the electricity cost per unit to come down to Rs 5.90 from Rs 6.15. By 2018, power would cost Rs 5 per unit with the railways agreeing to buy 500 mw. Additionally, the state government would waive off transmission and subsidy charges while supplying power to the Indian Railways, he said.
The RGPPL is a joint venture of state-owned Gas Authority of India Limited (GAIL) and National Thermal Power Corporation (NTPC). The RGPPL requires 1.97 million metric standard cubic metres per day (MMSCMD) gas to generate this power. It will require over 8.5 MMSCMD gas to run at full capacity.
“We are expecting to get Rs 200 crore in future from the de-merger. It is a technical process and the Centre is handling the project. The approval of the state was needed for the de-merger as it has a share in the project,” Mr Bawankule said.
The de-merger was announced by the Centre last year itself but was awaiting the state’s approval.
