NTPC offers to give Rs500 cr loan, Rs475 cr equity for Dabhol

NTPC offers to give Rs500 cr loan, Rs475 cr equity for Dabhol


New Delhi: State-run generation utility NTPC Ltd has offered to infuse Rs500 crore as loan and Rs475 crore as equity for completion of the Dabhol power plant, the Rajya Sabha was informed on 10 September.

Gas utility GAIL (India) Ltd has also offered to pump in an equity of Rs475 crore, Power Minister Sushilkumar Shinde said in a written reply.

The amount would be used for completion of revival works of the liquefied natural gas terminal and not for meeting any past liability of the erstwhile owner Dabhol Power Company. The LNG facility, when completed, would enable power generation as conceived in the original project design, he said.

NTPC and GAIL are the main promoters of Ratnagiri Gas and Power Pvt Ltd, the owner of Dabhol plant and LNG terminal.

To another query, Shinde said the plant switched from naphtha to regasified LNG as primary fuel on 31 July after GAIL started supplying RLNG on 23 July. However, the Gujarat High Court on 31 July granted a stay on pooled price of gas. Later, the Supreme Court vacated the stay on 22 August.

Following the Supreme Court directive, GAIL resumed RLNG supply on pooled price from 28 August and power generation started on the same day, he said. The pooled price is $4.3272 per million British thermal unit.

RGPPL has entered into a gas sale and purchase agreement with GAIL, Indian Oil Corp. and BPCL for 1.5 million tonnes a year up to September 2009, he said, adding this quantity is sufficient to run two units of the project.

Gail and Petronet LNG Ltd are yet to tie-up for the balance 0.7 MTPA gas for the third unit and supplies for the entire plant for the period beyond September 2009, he said.