CHENNAI: The Dabhol Power Plant, previously owned by discredited and now defunct US power major Enron Corp, is set to achieve another milestone in March, adding 640 MW more capacity to a controversial project once thought of as being jinxed.

“This will be a remarkable and rare turnaround of a plant that was moth-balled a couple of years ago,” said R C Shrivastav, director of human resources for the unit, that is formally called the Ratnagiri Gas and Power.

“The plant will start generating 1,940 MW power by the end of this fiscal,” Shrivastav told IANS, adding a host of issues and problems were overcome since the unit was taken over in 2005 to achieve the feat.

The Rs 2,297-crore equity in the company is jointly held by the state-run utility NTPC, hydrocarbons major GAIL India and an arm of the Maharashtra government, with financial institutions in India also holding a 21.77 percent stake.

The owners of the gas-based project are also proposing another unit there.

According to NTPC officials, some major challenges were overcome in reviving the plant, since there was no contractual arrangement with the original equipment suppliers. As a result, no guarantees could be enforced on the contracts.

There was also a lack of drawings and documents, as well as limited access to equipment terms, since assets were under the court receiver. This apart, NTPC had no experience of operating advanced class of gas turbines and ensineers faced repeated equipment failure.

 Officials said the federal government played a major role in getting a comprehensive service and rehabilitation agreement signed with General Electric in 2009 with well-defined time-line for upgrading the gas turbines.