State-owned NTPC Ltd. on Tuesday said it has signed a share purchase agreement to buy GAIL (India) Ltd.'s 25.51% stake in Ratnagiri Gas and Power Pvt., which is commonly known as Dabhol project.
After the transaction is complete, NTPC would have 86.49% stake in the Dabhol project. Earlier in January, the company had announced acquiring 37.47% stake from its lenders. Initially, NTPC and GAIL had 25.51% stake each.
"NTPC Ltd has executed share purchase agreements with GAIL (India) Ltd., on Feb. 23, 2021, for purchase of GAIL's share (25.51%) in Ratnagiri Gas and Power Pvt. Ltd. and sale of NTPC's share (14.82%) (on fully dilutive basis) in Konkan LNG Ltd.," according to a BSE filing.
It added that after transfer of shares as per the agreements, NTPC will exit from Konkan LNG, and NTPC's shareholding in Dabhol will stand at 86.49%.
RGPPL was incorporated on July 8, 2005, and is promoted by NTPC Ltd. and GAIL (India) Ltd. The company was set up to take over and revive the assets of Dabhol Power Company Project.
Ratnagiri Gas and Power owns an integrated power generation and re-gasified LNG facility. The power station is one of the India's large gas-based combined cycle power station.
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