Mumbai: The Maharashtra government said it would stand guarantee for a Rs300 crore loan to be availed by Ratnagiri Gas & Power Projects Ltd (RGPPL) from the Power Finance Corporation.
According to an official release, the Dabhol power project now run by RGPPL needs funds on an urgent basis to buy spares for repairing the plant.
The union government had requested the state to either provide the required funds to RGPPL or offer guarantee for the loan. The state government, however, would charge a guarantee fee on this transaction.
“Mahavitaran has been trying to procure power to meet the huge demand. Sometimes, the power so received costs as much as Rs8 per unit. Whereas, Dabhol provides it at Rs3.03 per unit only,” the release said.
“If RGPPL gets the required spare parts to repair Dabhol plant, it could result in additional power generation of 900 MW, which prompted the state cabinet to offer guarantee for the loan amount,” the release added.