Dabhol Power Station
Encyclopedia
Dabhol Power Station is located near Anjanwel village in Ratnagiri district
, about 160 kilometres (99.4 mi) south of Mumbai
. The power station was a built by the Dabhol Power Company
(DPC), which was a joint venture
of Enron
, General Electric
, Bechtel
and Maharashtra Power Development Corporation
. At the start of its construction in 1992, the Dabhol power station was the biggest foreign investment in India.
Due to a political controversy related to the pricing of power from the station and allegations of favoritism, the operation of the Dabhol power station was interrupted on several occasions. Subsequently, operations were interrupted due to the Enron bankruptcy and disputes between Enron's creditors and the Government of Maharashtra
(GoM). The power plant was finally rehabilitated and taken over by Ratnagiri Gas and Power
(RGPPL), which successfully revived and operates the plant.
as the fuel. Construction started in 1992 and finally completed in May 1999. The next phase was 1700MW of units using liquefied natural gas
(LNG) as fuel. At its height, the construction of the Dabhol power station employed 15,000 people.
The power project ran into trouble due to the power purchase agreement between the DPC and the state's power utility, Maharashtra State Electricity Board
(MSEB). The agreement negotiation lacked transparency, and details had not been made public. In 2000, MSEB was paying DPC Rs. 4.67/kwh while the tariff that MSEB charged its customers was Rs. 1.89/kwh.
By 2001, there were a number of political controversies brewing over the power purchase agreement. The price paid by MSEB for power from the Dabhol station was over twice that from other power stations in the state. With escalating tensions between MSEB, GoM and DPC, operation of Phase I and construction of Phase II came to a halt in May 2001. With the Enron bankruptcy, Enron's stake in DPC was bought out by GE and Bechtel.
The plant was moth-balled for 5 years, while the various claimants, including MSEB, GoM, GE, Bechtel, Indian banks and the Government of India
, settled their disputes over payments.
In May 2006, after protracted negotiations, state-owned NTPC Limited and GAIL
agreed to take over the power station. RGPPL was floated as a joint-venture between these two companies to own and operate the Dabhol power station. However, the revival proved difficult due to 3 catstrophic breakdowns in the equipment supplied by GE.
After repairs to the equipment, the power station had resumed operations at 100% of its installed capacity of 1967 MW in 2010.
Ratnagiri District
Ratnagiri district is one of the 35 districts of Maharashtra state in western India. Ratnagiri is the district headquarters of the district. The district is 11.33% urban. The district is bounded by the Arabian Sea to the west, Sindhudurg district to the south, Raigad district to the north and...
, about 160 kilometres (99.4 mi) south of Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
. The power station was a built by the Dabhol Power Company
Dabhol Power Company
The Dabhol Power Company was a company based in India, formed to manage and operate the Dabhol Power Plant. The Dabhol plant was built through the combined effort of Enron, GE, and Bechtel...
(DPC), which was a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
of Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
, General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
, Bechtel
Bechtel
Bechtel Corporation is the largest engineering company in the United States, ranking as the 5th-largest privately owned company in the U.S...
and Maharashtra Power Development Corporation
Maharashtra State Road Development Corporation
Maharashtra State Road Development Corporation Limited , commonly abbreviated as MSRDC, is an Indian Public limited company fully owned by the Government of Maharashtra. MSRDC was established on July 9, 1996 and incorporated as a public limited company under the Companies Act 1956 on August 2, 1996...
. At the start of its construction in 1992, the Dabhol power station was the biggest foreign investment in India.
Due to a political controversy related to the pricing of power from the station and allegations of favoritism, the operation of the Dabhol power station was interrupted on several occasions. Subsequently, operations were interrupted due to the Enron bankruptcy and disputes between Enron's creditors and the Government of Maharashtra
Government of Maharashtra
Government of Maharashtra is the government for the state of Maharashtra in Western India.It is an elected government with 288 MLAs elected to the legislative assembly for a 5 year term.-Ministers:...
(GoM). The power plant was finally rehabilitated and taken over by Ratnagiri Gas and Power
Ratnagiri Gas and Power
Ratnagiri Gas & Power Private Limited is a joint venture promoted by NTPC Limited and GAIL. The company was established to takeover and revive the assets of the defunct Dabhol Power Company...
(RGPPL), which successfully revived and operates the plant.
History
Construction of the Dabhol Power Station was planned to be completed in two phases. The first phase was a 740MW unit to use naphthaNaphtha
Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons, i.e., a component of natural gas condensate or a distillation product from petroleum, coal tar or peat boiling in a certain range and containing certain hydrocarbons. It is a broad term covering among the...
as the fuel. Construction started in 1992 and finally completed in May 1999. The next phase was 1700MW of units using liquefied natural gas
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....
(LNG) as fuel. At its height, the construction of the Dabhol power station employed 15,000 people.
The power project ran into trouble due to the power purchase agreement between the DPC and the state's power utility, Maharashtra State Electricity Board
Maharashtra State Electricity Board
Maharashtra State Electricity Board is a state-owned electricity regulation board operating within the state of Maharashtra in India. The MSEB was formed on June 20, 1960 under Section 5 of the Electricity Act, 1948...
(MSEB). The agreement negotiation lacked transparency, and details had not been made public. In 2000, MSEB was paying DPC Rs. 4.67/kwh while the tariff that MSEB charged its customers was Rs. 1.89/kwh.
By 2001, there were a number of political controversies brewing over the power purchase agreement. The price paid by MSEB for power from the Dabhol station was over twice that from other power stations in the state. With escalating tensions between MSEB, GoM and DPC, operation of Phase I and construction of Phase II came to a halt in May 2001. With the Enron bankruptcy, Enron's stake in DPC was bought out by GE and Bechtel.
The plant was moth-balled for 5 years, while the various claimants, including MSEB, GoM, GE, Bechtel, Indian banks and the Government of India
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
, settled their disputes over payments.
In May 2006, after protracted negotiations, state-owned NTPC Limited and GAIL
GAIL
GAIL Limited is a state-owned natural gas processing and distribution company headquartered in New Delhi, India. It has six segments: Transmission services of natural gas and liquefied petroleum gas , Natural gas trading, petrochemicals, LPG and Liquid hydrocarbons, GAILTEL and Others.- History...
agreed to take over the power station. RGPPL was floated as a joint-venture between these two companies to own and operate the Dabhol power station. However, the revival proved difficult due to 3 catstrophic breakdowns in the equipment supplied by GE.
After repairs to the equipment, the power station had resumed operations at 100% of its installed capacity of 1967 MW in 2010.