Much of the power plant and LNG facilities decaying

Vol 8, PW 16 (03 Nov 04) Midstream & Downstream

After four monsoons, much of the Dabhol Power Plant and associated facilities are decaying and being washed down the river Vashishti.

A report from General Electric based on meetings with Punj Lloyd reveals all. Punj Lloyd has been paid $2.1m every six months since April 2002 as the IDBI appointed caretaker of the $3bn Dabhol project.

GEs report tells us that IDBI deliberately excluded care, maintenance and preservation of the following assets which still stand in the power plant complex: the LNG terminal, the cooling towers, the Single Point Mooring, naphtha tanks and Phase-I of the power plants Block-A. It was IDBIs conscious decision to exclude these assets, reads the report.

Punj said it had been warned by IDBI not to touch the cooling towers, constructed by the renowned Paharpur Industries, as it was a Bechtel warranty issue. Reads the report: The tower base has deteriorated with only a fraction of its intended useful life left.

Punj admits that it did not have the necessary equipment to maintain the SPM system. When it requested funds for care and preservation of the SPM from IDBI, none were sanctioned.

Nothing has been done to the SPM for all these years, adds Punj Lloyd. We dont go out there.

There is no cathodic protection for the LNG terminal equipment except for the jetty. We could not do the SPM because there are no electrical connections to the button dolphins.

More shocking is Punj Lloyds admission on the naphtha tanks. Disposal of old fuel and purging of all lines may be required, it said.

The interior of the tanks may have rusted without air purging. The naphtha tanks may be unfit for service! DPCs fuel lines from the SPM were reversed for fuel outflow as DPC wanted to sell the naphtha to raise cash in its last days.

But this sale never took place once IDBI took control of DPCs accounts. Yet another shocking revelation: The entire fuel system of the power plant needs refurbishment to support operations with any fuel type.