Dabhol helped railways save Rs 1,000 crore in power costs a year


Dabhol helped railways save Rs 1,000 crore in power costs a year

Dabhol power plant, which is once again mired in controversy, was instrumental in providing cheaper power to the railways, which resulted in annual savings of Rs 1,000 crore, say sources.

In 2015, the railways decided to buy electricity from Dabhol, offering a lifeline to the project, now owned by Ratnagiri Gas Power Private Ltd (RGPPL)—a joint venture between state-run gas utility GAIL and generation major NTPC. The railways, in turn, benefited from lower tariffs and was able to reduce average cost from Rs 7-8 per unit to Rs 4.79.

Supreme Court on Thursday revived the task of fixing accountability for the ‘tainted’ 1992 deal with Enron to set up the 2,550mw plant. Shantanu Dixit of Prayas Energy said, “The move will go a long way in improving governance and fixing responsibility.” Read More

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