British Gas and Enron have evinced interest in picking up stake in the 160-mw Gujarat State Energy Generation (GSEG) power project which is coming up at Hazira.
The Rs 550-crore project is being set up with the Gujarat government holding majority control through its subsidiaries, a senior Gujarat government official said.
"The two companies have shown interest in picking up equity in the project but are yet to make a final decision," the official stated. The project is being executed by GSEG.
British Gas executive were unavailable for comment, while Enron executives could not be reached for comment.
Both Enron and British Gas are in the gas business, internationally. It makes sense for them to pick up equity in the project as it is based on liquefied natural gas, analysts said.
The Gujarat government is proposing to hold 51 per cent in the project, while an affiliate company of the ABB-Alstom combine will hold 16 per cent. This company will also be the engineering, procurement and construction contractor. The operations and maintenance contractor, which is yet to be finalised, will hold six per cent. Enron and British Gas are in the race for the balance 27 per cent.
The project is part of the Gujarat government's plan to invest Rs 1,17,000 crore in infrastructure by 2010. Around 50 per cent of this investment will be channalised into the power sector. The state government's share is being mainly routed through Gujarat State Petroleum Corporation (GSPCL). Other state government undertakings, too, are expected to participate in the scheme. oeings
