NTPC buys out GAIL in Dabhol project

State-owned NTPC on Tuesday said it has signed a share purchase agreement to buy GAIL's 25.51 per cent stake in Ratnagiri Gas and Power Pvt Ltd (RGPPL), which is commonly known as Dabhol project.

After the transaction is complete, NTPC would have 86.49 per cent stake in the RGPPL.

Earlier in January, the company had announced acquiring 37.47 per cent stake in RGPPL from its lenders. Initially, NTPC and GAIL had 25.51 per cent stake each in the Dabhol project.

"NTPC Ltd has executed ahare purchase agreements with GAIL (India) Ld on February 23, 2021, for purchase of GAIL's share (25.51 per cent) in Ratnagiri Gas and Power Pvt Ltd (RGPPL) and sale of NTPC's share (14.82 per cent) (on fully dilutive basis) in Konkan LNG Ltd (KLL)," according to a filing with the stock exchange.

It added that after transfer of shares as per the agreements, NTPC will exit from KLL, and NTPC's shareholding in RGPPL will stand at 86.49 per cent.

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.

RGPPL owns an integrated power generation and regasified LNG facility.

The power station is one of the India's large gasbased combined cycle power station.