Delhi: The Board of Directors of GAIL have approved
an equity contribution of Rs500 crore in the Ratnagiri
Gas and Power Private Limited (RGPPL), a company which
was incorporated on the 8th of July 2005 as a 50:50 joint
venture between GAIL and NTPC for taking over the assets
of the Dabhol Project. The investment will be made after
the approval by the 'cabinet committee on economic affairs'.
this, both GAIL and NTPC have approved investment of Rs500
crore each as equity contribution in RGPPL, which would
help in commencing the process of transferring the assets
of the defunct Dabhol Power Company through the Debt Recovery
Tribunal (DRT). Upon completion, RGPPL will undertake
construction and commissioning activities of the power
plant as well as the LNG terminal with a target to achieve
completion by the second half of 2006.
a promoter, GAIL's role will be to source the LNG required
to run the power plant of RGPPL as well as for the merchant
sale of RLNG. The capacity of the LNG terminal is 5 MMTPA,
of which 2.1 MMTPA would be required for the Power Plant.
GAIL will be developing necessary infrastructure to sell
R-LNG in the gas-starved markets of Western India after
payment of mutually agreed regasification charges to RGPPL.