EGoM to decide owner of LNG terminal next week

DABHOL DELAY

The government is likely to decide next week on selling the liquefied natural gas (LNG) terminal linked with the Dabhol project.

All three existing stakeholders "" NTPC, GAIL and the Maharashtra government "" are keen on taking over the asset.

The empowered group of ministers (EGoM) on the project is likely to meet on April 11 to decide whether to sell the terminal to get funds for the completion of the project.

Both NTPC and GAIL, which hold 28.33 per cent stake each in the Dabhol's new owner, Ratnagiri Gas & Power Pvt Ltd (RGPPL), have secured the approval of their boards for infusing Rs 500 crore into the cash-starved company provided they get the right to buy the five-million-tonne LNG terminal.

"Our board has cleared infusion of Rs 500 crore. We will do so as and when the government expects us to do that," NTPC Director (Operations) Chandan Roy said. Roy, who also heads RGPPL, said NTPC was keen to acquire the terminal linked with the 2,150-Mw plant.

The GAIL board had, earlier this week, approved the infusion of additional funds as RGPPL faced default on the Rs 500-crore payment to its contractors for the LNG terminal.

"Earlier it was said that GAIL, after infusing the Rs 500 crore, will get the right to match the highest bid when the terminal is auctioned. But both NTPC and Maharashtra government have also been now given the same right if they inject the additional money," Roy said.