MSEB to be partner in DPC

Maharashtra State Electricity Board will be the fourth partner, with a preferential equity of Rs 265 crore (Rs 2.65 billion), in the new company created for reviving beleagured Dabhol Power Plant lying idle for over four years.

According to sources, MSEB would park its equity at zero coupon rate for a period of five years in the new company called Ratnagiri Gas and Power Ltd, a JV between NTPC and GAIL, and after that they would start getting returns.

The Enron Saga

Of the total asset base of Rs 10,036 crore (Rs 100.36 billion) of Dabhol Power Corporation, three entities -- NTPC, GAIL and FIs -- would be contributing Rs 500 crore (Rs 5 billion) each as equity while the rest amount of Rs 8,536 crore (Rs 85.36 billion) would be the loan component.

The Boards of both NTPC and GAIL have already approved an equity of Rs 500 crore each and with GE and Bechtel withdrawing all litigations the plant is likely to restart generation of electricity by the middle of next year.

NTPC has raised certain issues and sought government permission with regard to them, including exemption from paying stamp duty involved in the transfer of assets first to the FIs and then from FIs to Ratnagiri Gas and Power Private Ltd.