The Hindu Business Line : Ratnagiri Gas to tap capital market by year-end

New Delhi, March 11 Ratnagiri Gas and Power Pvt Ltd (RGPPL), the erstwhile Dabhol project, could tap the capital market by the end of this year. RGPPL is planning an IPO to raise Rs 1,000 crore.

Speaking to newspersons here, Mr R.K. Goel, Chairman, RGPPL, said: “The RGPPL board will consider converting the private limited company into a public limited company and subsequently consider an IPO.”

Currently, RGPPL’s total equity capital base is Rs 4,000 crore. Out of Rs 4,000 crore, promoters GAIL, NTPC, Maharashtra State Electricity Board and financial institutions have, so far, contributed Rs 2,985 crore and the balance is to be raised through the IPO, he said.

The company plans to use the IPO proceeds to repay the debt it has taken from Power Finance Corporation (PFC) and NTPC. The company has taken Rs 350 crore loan from PFC for completion of the power plant and LNG import terminal. NTPC had also sanctioned Rs 500 crore loan, of which Rs 150 crore has been drawn.

The board of the company is expected to consider the change in status at its meeting on March 20. He also said that post-IPO, a private placement of Rs 500 crore is possible wherein the lenders to the power plant may convert their debt into equity.

The plant will be fully operational by next month when the third generating unit is commissioned, he said. Currently, two units were generating about 1,100-MW electricity. Mr Goel said breakwater, which will make the five million tonne a year liquefied natural gas (LNG) import and re-gassification terminal operate at full capacity, would be ready by the end of 2011.

“By end-April, Dabhol would be generating 1,700 MW of electricity,” he said.

The project was originally expected to be completed during September-November 2006, but was delayed due to various reasons including non-availability of gas. The delay has also led to the project cost going up. The completion cost, which was initially estimated to be Rs 870 crore was put at Rs 1,960 crore in September 2006, and has now been further revised to Rs 2,144 crore excluding Rs 220 crore for mandatory spares.

Currently, two of the three power blocks are operational and the third is expected to begin operations. The LNG facility excluding the breakwater is expected to be completed in the later half of 2008.

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