New Delhi: State-run gas firm GAIL (India) Ltd will infuse an additional Rs475 crore equity in Dabhol power project to help the beleaguered unit complete the construction of an attached liquefied natural gas terminal.
GAIL currently holds 28.33% in Ratnagiri Gas and Power Pvt Ltd, the company which took over the Dabhol power plant after bankruptcy of US energy major Enron Corp.
After the infusion, its equity stake would rise to 32.88%, RGPPL sources said.
State-run power firm NTPC, which also holds 28.33% in RGPPL, will invest Rs475 crore, while Maharasthra State Electricity Board (MSEB), having 15% stake, would put in Rs250 crore.
RGPPL needs Rs1,200 crore to complete the receipt facility and build breakwater.
MSEB, the sole purchaser of power from the plant, will see its stake rise to 17.37%, while that of financial institutions, who are not investing fresh funds, will fall to 16.83% from 28.33%.
GAIL, NTPC and FIs had infused Rs500 crore equity each in RGPPL to takeover Dabhol two years ago. MSEB had at that time provided only Rs265 crore.
The sources said the GAIL board approved the proposal to pump in additional equity on 21 August, provided the money would be used only for completing the 5-million tonne-a-year LNG import terminal and other promoters make their contributions too.
GAIL will also give the funds on getting rights to market the LNG left after generating power at the project on the Maharashtra coast. RGPPL needs 2.1 million tonnes of LNG a year for generating 2,184 MW, leaving 2.9 million tonnes for sale.
The Dabhol plant in Maharashtra has been shut since last week after gas supplies to the beleaguered project were stopped due to a court order on pricing of the fuel.
The operations of a 740-MW unit was stopped last week.
RGPPL switched from naphtha to LNG for power block-II (740 MW) after a GAIL pipeline supplied re-gasified LNG, imported by Petronet LNG Ltd, at Dahej in Gujarat.
The sources said the revival of power block-III (740 MW) was under progress and was likely to be available for generation on gas by August 31.
The 670-MW block-I would be ready for operations only by November, they said.