GAIL to invest Rs 475 crore more in Dabhol power project
By Our Corporate Bureau | 22 Aug 2007
Mumbai: GAIL will infuse an additional Rs 475 crore equity in the Dabhol power project to complete construction work of an attached liquefied natural gas terminal at the beleaguered unit.
State-controlled GAIL currently holds 28.33 per cent in Ratnagiri Gas and Power Pvt Ltd, which took over the Dabhol power plant after the exit of the original promoter, US energy major Enron Corp.
After the infusion of additional funds, its equity stake would rise to 32.88 per cent, RGPPL sources said.
State-run power utility NTPC, which also holds 28.33 per cent stake in RGPPL, will invest Rs 475 crore, while Maharasthra State Electricity Board (MSEB), having 15 per cent stake, will put in Rs 250 crore.
RGPPL needs Rs 1,200 crore to complete the receipt facility and build breakwater.
GAIL, NTPC and FIs had infused Rs 500 crore equity each in RGPPL to take over Dabhol two years ago. MSEB had at that time provided only Rs 265 crore.