National Thermal Power Corporation would invest up to Rs.500 crore as share application money in the equity capital of Ratnagiri Gas & Power Pvt Ltd (RGPL), the new company floated to take charge of the assets of the $2.9-billion Dabhol power project.

The company's board of directors, at a meeting held on 9 July 2005, approved an investment of up to Rs.500 crore as share application money in the equity capital of RGPL, a 50:50 joint venture between NTPC and GAIL (India) Ltd, for taking over the assets of Dabhol Power Co (DPC).

RGPL would take over the assets of DPC from the Indian lenders to the project by going through the Debt Recovery Tribunal and court process.

The investment decision is subject to the approval by Cabinet Committee on Economic Affairs or relaxation of power granted by the Centre to NTPC for the purpose of acquisition of assets and investment in the joint venture company. The decision is also subject to the approval by the board of directors of GAIL in the equity of RGPL.

Also See:

Dabhol Power Co is now Ratnagiri Gas & Power (8-Jul-05)