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Ratnagiri venture to be split into two for revival: Minister | Canindia News

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Ratnagiri venture to be split into two for revival: Minister

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CanIndia New Wire Service 0 comments

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New Delhi, Sep 30 (IANS) The state-owned Ratnagiri Gas and Power, a joint venture formed for the revival of the Dabhol project of scandal-hit and now-defunct Enron Corp. of the US, will be split into two ventures as part of a revival plan finalised by the government, a union minister said on Wednesday.

The joint venture, between the National Thermal Power Corporation and GAIL India, will be split into two power entities – one for gas-based electricity and the other for liquefied natural gas regasification terminal, Power Minister Piyush Goyal said at a press conference here.

“We will begin generating power from November 1,” Goyal said, adding: “We will waive off Value Added Tax and transmission charges on supplies to the Railways”.

The plant will supply 500 MW to the Railways at the rate of Rs.8.46 per unit, Goyal said.

He also announced a capital infusion of Rs.2,000 crore for increasing the LNG handling capacity to five million tonnes.

Ratnagiri Gas and Power has been shut since January 2014.

NTPC and GAIL hold 25.51 percent stake each, while the rest is held by Maharashtra State Electricity Board (13.51 percent) and various financial institutions (35.47 percent).

The company has its plant at Anjanwel village in Ratnagiri district of Maharashtra, some 330 km from Mumbai. The project is spread over almost 1,700 acres on a hilly and picturesque coastal terrain. The gas-based power station is one of the India’s largest.

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