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Dabhol Power Co to export fruits, flowers

Y Siva Sankar in Dabhol, Maharashtra

In a seemingly symbolic move to mark the imminent fruition of its two-phase power project in Guhagar (near Dabhol in Ratnagiri district of Maharashtra), the Dabhol Power Company is toying with plans to produce fruits and flowers.

Officials at the site have suggested to the company's top brass that the horticulture and floriculture forays can help DPC to export fruits and flowers to the Middle East and Europe.

Sources attributed DPC's fruit-and-flower plans to two factors:

One, parent company Enron would shortly press into service its own liquefied natural gas or LNG carrier being built by Mitsui. The carrier is to be the world's largest LNG tanker. Once the tanker offloads LNG near the site, the empty space on its return journey to the Gulf is being sought to be used to export the agri-produce. The air-conditioned tanker may suit the purpose, DPC officials said.

Two, DPC, as part of its local environment preservation and promotion exercises, has brought nearly 400 acres in and around the project site under cultivation. (DPC had taken the project site on a 99-year lease from the Maharashtra Industrial Development Corporation in 1993.) Several varieties of mangoes and local fruits, and a bouquet of floriculture products, may be exported.

Initially, exports would be in the Rs 150 million to Rs 200 million range. Commercial activity is likely to be launched formally in 2005. Exports then would be to the tune of Rs 1 billion.

"This business offers high margins that can go up to 40 per cent," an official said.

Some of the 40 varieties of mangoes that are grown by the company in and around the site are the world famous Alfonso, Neelam, Langda, Totapari, Cuban mango, and Payari. "In time, we will grow all the known 140 varieties of the King of Fruits," the official said.

The company is also working closely with the Konkan Krishi Vidyapeeth, an agricultural university, to develop hybrid varieties of Sindhu and Ratna, and some flowers. "Each fruit is expected to weigh 3.5 kg. There is a huge demand for Indian fruits in the Gulf and Europe," the official said.

It is learnt DPC is keen to exploit the demand fully. "The region is rich in wild berries like karvandha and kokam. Not many people are familiar with this bounty of Nature. We will grow these ourselves and also help the local growers to export these. Profits would be used to further develop the region," the official said.

DPC is toying with several plans to make the most of "the change in people's perception" of the company, the project's progress and development of the region over the years.

"Initially, there were protests from environmentalists and human rights activists. The project turned controversial. Now, the good work done by the company for the community has brought about a sea change in the way the locals looks at us," the official said.

Investments in healthcare, educational, cultural and recreational facilities for the locals will be stepped up.

Fresh investments for building an airstrip and setting up an industrial park are not ruled out. DPC is enthused that the existing infrastructure created by it is attracting attention of other companies. An industrial park is believed to further that cause.

"After all the hue and cry, Enron's policy -- 'Be a good neighbour' -- is paying rich dividends. Dabhol has emerged as a model for Enron's projects worldwide," the official claimed.

DPC is a joint venture of Enron India Limited (50 per cent), the wholly owned subsidiary of Enron Corporation, Bechtel (10 per cent), General Electric (10 per cent) and the Maharashtra Power DCL (30 per cent), a subsidiary of the Maharashtra State Electricity Board.

The 1,480 mega-watt, LNG-powered second phase of the project is to be commissioned in December 2001. The 740-MW, naphtha-fired first phase began power supply to the MSEB in October 1998.

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