The board of National Thermal Power Corporation (NTPC) has decided to invest Rs 500 crore as share application money in the equity capital of Ratnagiri Gas and Power Pvt Ltd (RGPPL) — a 50:50 joint venture between NTPC and GAIL (India) Ltd.The new company will take over the assets of Dabhol Power Project from Indian lenders to Dhabol Power Company through debt recovery tribunal and court process, NTPC said in a notice to the BSE. The NTPC board cleared the proposal at its meeting on July 9.The NTPC investment, however, is subject to the approval by the Cabinet Committee on Economic Affairs (CCEA) or relaxation of power granted by the Government of India (GoI) to NTPC for the purpose of acquisition of assets and investment in joint venture and approval of Rs 500 crore by the GAIL board.The settlement with Bechtel — is expected in a day or two — is considered to be the last major hurdle prior to restarting of the power plant that has been shut for over four years. ‘‘The representatives of Indian financial institutions had told the empowered group of ministers last week that they are negotiating with Bechtel and hope to reach a settlement in a couple of days,’’ Power Secretary R.V. Shahi had said last week.The settlement with Bechtel, which, along with GE, owns 85 per cent in Dabhol, would pave the way for restarting the gas-based plant in Ratnagiri, Maharashtra.Sources said the GoM, headed by Defence Minister Pranab Mukherjee, also cleared a Cabinet note containing the entire settlement package on Dabhol, including payments to GE, Bechtel and overseas lenders. The note would now be placed before the Cabinet for approval.Engineers from GE and NTPC have begun inspections of the plant that was shut down in June, 2001, following disputes between the Maharashtra State Electricity Board and the promoters.
