MSEB in Dabhol

Maharashtra State Electricity Board (MSEB) will have a preferential equity of Rs 265 crore in the new company created for reviving the beleagured Dabhol power plant.

Sources said MSEB would be the fourth partner and would park its equity at zero coupon rate for a period of five years in the new company called Ratnagiri Gas and Power Ltd, a joint venture between NTPC and GAIL.

Of the total asset base of Rs 10,036 crore of the Dabhol Power Corporation, three entities "" NTPC, GAIL and FIs "" would be contributing Rs 500 crore each as equity while the remaining Rs 8,536 crore would be the loan component.

The boards of both NTPC and GAIL have already approved an equity of Rs 500 crore each and with GE and Bechtel withdrawing all litigations the plant is likely to restart generation of electricity by the middle of next year.