The Prime Minister’s Office (PMO) has stepped in to keep afloat Ratnagiri Gas and Power (RGPPL), the second avatar of the Dabhol power project. It has called a meeting of key stakeholders to resolve issues plaguing the company, convince the Railways to enter into a power purchase agreement, and expedite the demerger of the LNG division. Almost a decade after lenders and public sector companies revived the troubled project, RGGPL, with about Rs.8,000-crore debt, is dealing with a string of issues and PMO’s move can be a shot in the arm. On top of the agenda for the meeting that is scheduled to take place on March 4 is to resolve the issue relating to the power purchase agreement between the railways and the RGGPL, which has seen a stalemate due to disagreement over pricing. The PMO may ask the Maharahstra state government to waive off state-wise transmission charges and transmission losses, and also waive off the tax on gas to the project to make the power more viable. The plan for the demerger of the LNG regasification unit from the power unit has been approved by lenders but certain issues raised by Power Finance Corporation and LIC have to be sorted out. The agenda for the meeting seeks PFC, which has loaned Rs.1,200 crore to RGGPL, to approve the demerger scheme.
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