Since June 6, the 1,967 mw-Dabhol power plant in Maharashtra has been closed owing to lack of natural gas.

Ratnagiri Gas & Power (RGPPL), which owns the plant, is demanding gas linkage for the plant in order to restart generation.

This is the second time the project remains shut after April 2013, Between February 21 and April 2, the plant remained closed because of a lack of gas supply.  Generation was restored after gas supply was resumed on April 3. The generation since then till June 6 was between 600 mw and 1,300 mw.

The company was receiving 2.5 million standard cubic metre per day (mmscmd) of gas and 5.5 mmscmd during April 3 and June 6.

Owing to a total generation loss of 9,053 million units (MUs), RGPPL incurred a loss of Rs 1,156 crore towards fixed cost alone during 2012-13. During April and May 2013, the company suffered a loss of Rs 156 crore towards fixed cost, following the generation loss of 298 MUs .

The fixed cost component in the rate of supply includes interest on loan, return on equity, depreciation, operation and maintenance expenses, insurance, taxes and interest on working capital. Maharashtra draws 95 per cent of the power generated at Dabhol. The tariff is Rs 4.80 a unit.

In 2011-12, RGPPL incurred a generation loss of 3,095 MUs. The lenders to the Dabhol project raised concerns over the generation loss owing to the closure of the plant for want of adequate gas.