NTPC offers 40 per cent in Kayamkulam project to Qatar company

09 October 2006

Mumbai: NTPC has offered up to 40-per cent stake in its gas-fired Kayamkulam power project in Kerala to Qatar Investment Board (QIB). The offer follows the power ministry's suggestions to central public sector units to identify projects for attracting investment from West Asian countries.

"We have sent an MoU to Qatar Investment Board and are awaiting a response," T Sankaralingam, chairman and MD of NTPC, said.

The Kayamkulam project has an installed capacity of 350 MW and proposes to invest over Rs6,000 crore for expanding to 1950 MW.

NTPC, however, denied that the offer was based on gas sourcing. "We are looking for Qatari investment and not gas, and depending on their response we will work out the equity structure," NTPC sources said.

NTPC is believed to have proposed a joint venture with QIB and Petronet LNG for its Kerala expansion — offering 40 per cent stake to QIB and 10 per cent to Petronet LNG. NTPC would hold the remaining 50 per cent.

The government had only last week offered Qatar a stake of up to 12.5 per cent in Petronet LNG in return for an extra 10 million tonnes of LNG.