El Passo of the US signed an MoU
with KPP Nambiar and Associates for setting up the Rs.1,471 crore, 513 MW
naphtha-based combined cycle Kannur power project in Kerala.
El Passo replaced Enron
International in the venture. Enron had withdrawn from the project following
opposition from the Kerala state government to Enron’s equity participation in
the project. El Passo would now pick up 74 per cent equity in Kannur Power
Project Ltd. 24 per cent stake would be held by Kortech Corporation, the
Mauritius-based subsidiary of KPP Nambiar and Associates. Kortech Corporation
had been floated as a special purpose vehicle by KPP Nambiar and Associates for
raising funds for the project.