NTPC signs pact with GAIL to buy 25.51 per cent stake in RGPPL

NTPC Limited has signed a share purchase agreement to buy GAIL’s 25.51 per cent stake in Ratnagiri Gas and Power Limited (RGPPL).

RGPPL, was incorporated in 2005 and is promoted by NTPC Ltd and GAIL (India). The company was set up to takeover and revive the assets of Dabhol Power Company Project.Initially, NTPC and GAIL had 25.51 per cent stake each in the Dabhol project. After the transaction is complete, NTPC would have 86.49 per cent stake in the RGPPL. Further, NTPC has sold a share of 14.82 per cent, on a fully dilutive basis, in Konkan LNG Limited (KLL)as well (KLL owns and operates the LNG regasification terminal at Dabhol). Once the transaction is concluded, NTPC will exit from KLL. In another development, NTPC has raised Rs 9 billion by issuing unsecured, redeemable, taxable, listed, rated non-convertible debentures of which the series-I debentures worth Rs 4 billion would mature on February 23, 2024 and the series-II debentures worth Rs 5 billion would mature on February 23, 2026.