Reliance Power,Shell in terminal talks

Reliance Power keeps exploring various business opportunities. The company would not like to comment on specific business proposal,the utility said.

A Shell India spokeswoman did not respond to phone calls seeking comment.

Reliance Power is in talks with Shell to form a joint venture in which the two companies will hold equal stake and Kakinada port in the southern Andhra Pradesh state will own a minority stake,the source with knowledge of the matter said.

The proposed venture will likely invest 30 billion rupees564.92 million to set up an LNG terminal at Kakinada on India8217;s east coast and would import and supply gas initially to Reliance Power8217;s 2400-megawatt,gas-fired plant in Andhra Pradesh,slated to come onstream in 2012,the source said.

India8217;s gas-based power plants are facing uncertainty over fuel supply as gas output from the D6 block operated by Reliance Industries,off India8217;s east coast,has declined,forcing power producers to look for other substitutes.

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