Dabhol in a mess: Completion of LNG terminal critical to project viability, says MoF

The Ministry of Finance (MoF) has urged the Ministry of Petroleum and Natural Gas (MoP&LNG) to take all possible steps to ensure the early operationalization of the LNG terminal at the Ratnagiri Gas and Power project. The ministry has asserted that detailed financial analyses have revealed that without tolling revenues from the terminal, the financial viability of the entire project, which is being developed in an integrated manner, is suspect.

•  This comes in view of the CERC's recent decision, which has disallowed the capital costs incurred on the LNG terminal in determination of the power tariff from the CCPP component. 
•  As of now, Ratnagiri Gas and Power Project Limited (RGPPL) can look forward to receiving its first cargo of LNG in December 2010. It, however, will not achieve its full rated capacity of 5 MMTPA before December 2012.
• It remains to be seen if the petroleum ministry is able to actually move up these deadlines.