The Hindu Business Line : Unocal backs out of Bidadi project

THE multinational petroleum company, Unocal, has withdrawn its interest from the Bidadi power project, which was to be promoted as a joint venture between the company's subsidiary, Unocal Bharat Ltd, and Karnataka Power Corporation Ltd.

The 700 MW project has been hanging fire for more than two years after the two entities entered into an understanding. With the joint venture partner withdrawing, KPCL's stake will become 51 per cent.

The project was initially planned with liquid fuel as feedstock and was expected to have a capacity of 200 MW. The project was estimated to cost Rs 650 to Rs 800 crore with a debt equity ratio of 70:30 per cent. But the project was later upgraded to a combined cycle plant with a capacity of 700 MW costing Rs 2,800 crore- Rs 3,000 crore. It was to be fired initially by naphtha and later by LNG (liquefied natural gas).

Informing the presspersons of the developments here, the Chief Minister, Mr S. M. Krishna said the Government would now look at fresh options for implementing the project.

He said with the withdrawal of Unocal, the Government stake in the project had gone up to 51 per cent from its earlier 25 per cent. Unocal had a stake 26 per cent, with the remaining 49 per cent offered to institutions and public.

While not giving details on Unocal leaving the project, Mr Krishna said, "any way the three-year period for firming the project had expired".

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