Dabhol power project revival: Piyush Goyal to call meeting in two weeks

The Centre will hold a meeting of all stake-holders to resolve the issue of non-payment of dues from the crippled Dabhol Power Project, which has been closed for a long time due to fuel shortage.

"The earlier government has left behind a large liability of Rs 2,000 crore that the state government owes to Ratnagiri Gas and Power Plant," Union power minister Piyush Goyal told reporters in Mumbai on Thursday.

Noting that lenders to the project are also under stress, Goyal said, "I will convene a meeting in 10-15 days where we will sit down with the lenders, the state, finance and oil ministries and other stakeholders to resolve all the issues."

A bankers meeting with Finance Minister Arun Jaitley, which got cancelled, was scheduled for Thursday, the power minister said.

"Bankers, who have an exposure of Rs 8,500 crore to the plant, were supposed to meet the finance minister, but that would not have resulted in a final outcome since Maharashtra's position is not yet clear.

I had a discussion with Chief Minister Devendra Fadnavis and with state power minister Chandrashekar Bawankule. We expect the state to be ready with their view in 10-15 days after which we will sit down to resolve the problem," Goyal said.

The project has been facing difficulty due to non-availability of gas and dues to banks are not being paid by the company on time.

RGPPL, a joint venture between gas utility GAIL and NTPC, shut the Dabhol Power Plant in March 2014 after gas supplies from Reliance Industries' KG-D6 fields were stopped.

When asked whether the government was also ready to privatise RGPPL, Goyal said, "Gas supply across the country is down and is inadequate to meet the demand. Therefore we will have to look at some innovative methods to restart gas plants and we are working towards that. In the process, we are open to all ideas and we will take a holistic view."

The minister added, "If anybody suggests anything in the interest of people, I am open to it. If you feel privatisation will help give cheaper power I am sure everyone will be happy to do that."