The Hindu Business Line : GAIL `expresses interest' in Dabhol-II

GAS Authority of India Ltd (GAIL) has communicated its `Expression of Interest' to the IDBI, Dabhol Power Company and Maharashtra State Electricity Board for taking an equity stake in Dabhol Power Company which may also involve a strategic partner, the company said today.

According to an official release, GAIL intends to adopt a broad- based approach while undertaking the due diligence as it has already forayed into the power sector through equity participation in the 156 MW Hazira power project in Gujarat.

GAIL's move follows the two existing bidders for DPC - the Tatas and BSES - making it clear to the Financial Institutions that they would like to buy the entire project - the 2184 MW plant and the 5 mmtpa LNG terminal- and not just the power plant. In such a situation, the parties solely interested in the LNG terminal will be required to negotiate with the bidders for the entire project or bid for the project with a strategic partner in the power sector, according to officials.

GAIL has said that it expects to shortly complete the preliminary formalities after which the due diligence exercise for the Dabhol would be undertaken. The company has appointed KPMG as its consultant for doing the due diligence project.

According to the GAIL Chairman, Mr Prashanto Banerjee, the company h as already put in its intent for acquiring the offshore equity corresponding to 85 per cent of the project cost.

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