NEW DELHI, APR 11: National Thermal Power Corporation (NTPC) will pick up 16.5 per cent in Petronet LNG and 26 per cent Pipava LNG terminal project promoted by the British Gas. The corporation is likely to approve the proposal for the same, when it meets during the end of this month, a top official of the corporation said.While NTPC would take 16.5 per cent stake in Petronet LNG, the corporation plans to have a 26 per cent equity in Pipava terminal project, the official on condition of anonymity said.He said, the amount to fund the acquisition of equity would be generated through the company's internal resources.NTPC already has a credit line of over Rs 5,000 crore tied up from various financial institutions including the Industrial Credit and Investment Corporation of India (ICICI), Industrial Development Bank of India (IDBI) and the State Bank of India (SBI), the official said. The petroleum ministry has already approved the proposal for roping in NTPC with a 16.5 per cent stake in the Petronet LNGcompany by asking other two national oil companies - Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) - to dilute their stake of 12.5 per cent each to accommodate the power utility. The restructured equity of Petronet LNG would now have Gas Authority of India Ltd (GAIL), Oil and Natural Gas Corporation (ONGC) and NTPC as equity holders with 16.5 per cent stake each.While for the 400 million dollar Pipava Terminal project in Gujarat, NTPC was offered a 26 per cent stake as the corporation was to be one of the major consumers of LNG in the state.The official said, with the corporation picking up equity in the two project, most of its gas-based plants would not have to scout for fuel linkages as they would now already be firmed up.NTPC is planning to arrange fuel for its projects like the Anta, Auriya, Kawas and Gandhar gas based stations through LNG route, which the official said was now more or less firmed up.The corporation is planning to be a 40,000 mw plus company by the year2007 and the move to acquire stakes in the two projects is also a part of NTPC's diversification plan into other areas of business. Petronet LNG on its part is also awaiting a formal nod from the cabinet for having its restructured equity pattern set up, petroleum ministry sources said.NTPC, however, is yet to indicate the exact quantum of LNG they would need from Petronet LNG to cater to the needs of its various gas based power plants, they added.
