Reliance eyes Dabhol power plant

20 November 2006

Mumbai: Gas-rich Reliance Industries Ltd is looking at acquiring the Dabhol power plant even as the government set attempts to revive the plant in motion. However, revival chances of the 2,184 MW plant hinges on sourcing or tying up natural gas for the project on a long-term basis.

The government is currently trying to revive the Dabhol power plant and the adjacent LNG terminal through NTPC and GAIL. But if attempts to source fuel for the power plant fail, it may either have to hive off the LNG terminal or sell it to a company capable of sourcing fuel or even sell off the power plant itself.

Reliance has long been looking for a setting up an LNG import facility on the west coast, a company official said. He said RIL would be keen on taking over the LNG facility and even the power plant if offered by the government.

"We had originally planned to construct a liquefied natural gas (LNG) import facility at Jamnagar in Gujarat. But after BP Plc of UK walked out of the project and our company finding huge gas reserves in Krishna Godavari basin off east coast, the plans were put on hold," he said.

He said the Dabhol terminal would offer a better opportunity to balance the gas source on the east coast.

"We plan to pipe gas from KG-D6 field to Maharashtra and Gujarat through Kakinada-Baruch pipeline and to south through Kakinada-Chennai-Coimbatore- Bangalore line. It will also be taken to eastern India through the Kakinada-Haldia pipeline. But we need imported fuel to balance the indigenous source," the official said.