The board of Gail (India) on 22 July 2005 approved an equity contribution of Rs.500 crore in Ratnagiri Gas &  Power Pvt Ltd (RGPPL), a 50:50 joint venture between Gail (India) and National Thermal Power Corporation for taking over the assets of the reviving Dabhol power project. The investment will be made after the approval by the Cabinet Committee on Economic Affairs.

With this, both Gail and NTPC have approved investment of Rs.500 crore each as equity contribution in RGPPL. The process of transfer of assets through the Debt Recovery Tribunal (DRT) route would start soon, it is learnt.

NTPC's equity investment of Rs.500 crore in the joint venture was approved in a board meeting on 9 July 2005.

Upon completion of the asset transfer, RGPPL would undertake construction and commissioning activities of the power plant as well as the LNG terminal with a target to achieve completion by end-2006.

Gail's role will be to source the LNG required to run the power plant of RGPPL as well as for the merchant sale of R-LNG.

Also See:

Dabhol revival: NTPC to invest Rs.500 crore as equity (12-Jul-05)