Rys gets cheaper power as Dabhol plant recommences generation

The Railways has started procuring cheaper power to the tune of 300 MW from Ratanagiri gas plant in Maharashtra after the Dabhol power plant, owned by Ratnagiri Gas and Power Private Limited (RGPPL), restarted electricity generation on Thursday.

Railways for the first time is drawing power under open access as distribution licensees in any state. The move will help save Rs600 crore annually for Central and Western Railway zones, a railway ministry release said.

Electricity from RGPPL is almost Rs4 per unit cheaper in comparison to the present tariff being paid by the Railways in Maharashtra.

Railways has been allocated 500 MW power from Ratnagiri plant. The procurement of remaining 200 MW power will also be done soon, which will be utilised for traction power needs in other states. The complete procurement of 500 MW in the coming days is expected to give a saving of about Rs1,000 crore annually.

The Dabhol power plant is producing 290 MW power initially, which will be sold to the Indian Railways. The electricity generation will be further scaled up in the coming months.

This achievement was made possible with the concerted efforts of several stakeholders: Central Government, which allocated gas under the new pooling mechanism for gas-based power plants, Maharashtra State Government, NTPC, GAIL, MERC and Indian Railways.

RGPPL, promoted by NTPC Limited and GAIL (India) Limited, was set up to takeover and revive the assets of Dabhol Power Company Project. The company has 1,967 MW capacity power plant located at Village Anjanwel, District Ratnagiri in Maharashtra, nearly 330 KM from Mumbai.