Date:23/07/2005 URL: http://www.thehindubusinessline.com/2005/07/23/stories/2005072302450300.htm

Back GAIL board clears equity participation in Ratnagiri Gas

Our Bureau

New Delhi , July 22

THE Board of Directors of GAIL (India) Ltd on Friday approved an equity contribution of Rs 500 crore in Ratnagiri Gas and Power Private Ltd (RGPPL), 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, according to a GAIL release.

With this, both GAIL and NTPC have approved investment of Rs 500 crore each as equity contribution in the RGPPL and soon the process of transfer of assets through the Debt Recovery Tribunal (DRT) route would get started, the company said.

GAIL further stated that upon completion of the asset transfer, RGPPL would 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.

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 R-LNG.