GAIL likely to infuse additional funds in Dabhol project
By Our Corporate Bureau | 30 Apr 2007
Earlier, the company said that it would invest another Rs 500 crore in the project provided it was given the liquefied natural gas (LNG) terminal of RGGPL.
Now though GAIL plans to wait for the Government to take a final call on hiving off the LNG terminal, the company will continue to make the first claim on it. However, in case the terminal is not hived off, the infusion of additional funds will not have any adverse impact on GAIL's finance, as GAIL will get returns on its investment, they added.
GAIL holds 28.33 per cent equity in RGPPL, which has under it a 2,150-MW power plant and a five-million-tonnes-per-annum LNG terminal and re-gasification facility.
RGPPL requires Rs 450 crore for revival of power plants and Rs 565 crore for the LNG works, but it does not have the money to pay the contractors.
The Government was considering the option of hiving off the LNG terminal and selling it in order to expedite the revival of the Dabhol project.
RGPPL holds both the assets of the power project - the 2,150 MW power plant and the five millions tonnes LNG terminal.
