An empowered group of ministers (EgoM) looking to revive Ratnagiri Gas and Power Pvt Ltd, earlier known as the Dabhol Power Co. led by the now defunct Enron has set up a committee of secretaries to figure out norms for lenders after key promoter NTPC agreed to a fresh infusion of equity but insisted that escalation in project costs must be borne by lenders.
The ministers led by External Affairs Minister Pranab Mukherjee said the committee would comprise secretaries from the ministries of power, petroleum, law and finance. According to a Power Ministry official the lenders led by ICICI Bank have agreed in principle to bear the cost escalation under a common loan agreement.
NTPC, which holds a 28.33 per cent stake in RGPPL, has agreed to infuse Rs. 500 crore as equity, part of it in the liquefied natural gas (LNG) terminal forming part of the project, but the terminal’s cost has shot up to Rs. 4,000 crore from the original estimate of Rs. 2,800 crore. NTPC wants to put in as much as 70 per cent of its new investment in the power block and the rest for LNG.