New Delhi: The state-owned National Thermal Power Corporation Ltd (NTPC) on Monday said it would invest up to Rs500 crore as share application money in the equity capital of Ratnagiri Gas and Power Pvt Ltd (RGPL). RGPL has been floated to take charge of the assets of the $2.9-billion Dabhol power project.

The company's board of directors, at a meeting held on July 9, has approved an investment of up to Rs500 crore as share application money in the equity capital of RGPL, which will be a 50:50 joint venture between NTPC and GAIL (India) Ltd, and will take over the assets of the Dabhol Power Company (DPC).

RGPL would take over the assets of DPC from the Indian lenders to the project by going through the Debt Recovery Tribunal and court process, NTPC informed the Stock Exchange, Mumbai (BSE).

The investment decision is subject to the approval by Cabinet Committee on Economic Affairs or relaxation of power granted by the Centre to NTPC for the purpose of acquisition of assets and investment in the joint venture company, it said.

The decision is also subject to the approval by the board of directors of GAIL in the equity of RGPL, it added.