Gail to infuse Rs 475cr in Dabhol

Aug. 22: State-run gas firm GAIL (India) Ltd will infuse an additional Rs 475 crores equity in Dabhol power project to help the beleaguered unit complete the construction of an attached liquefied natural gas terminal. GAIL currently holds 28.33 per cent in Ratnagiri Gas and Power Ltd, the company which took over the Dabhol power plant after bankruptcy of Enron Corp.
After the infusion of additional funds, its equity stake would rise to 32.88 per cent. State-run power firm NTPC, which also holds 28.33 per cent stake in RGPPL, will invest Rs 475 crores, while Maharastra State Electricity Board (MSEB), having 15 per cent stake, would put in Rs 250 crores.
RGPPL needs Rs 1,200 crores to complete the receipt facility and build breakwater. MSEB, the sole purchaser of power from the plant, will see its stake rise to 17.37 per cent, while the equity of financial institutions, who are not investing fresh funds, would fall to 16.83 per cent from 28.33 per cent.