GAIL Accords To Invest Rs 500cr in Dabhol

NEW DELHI: State-run gas utility GAIL (India) Ltd has accorded to invest an additional Rs 500 crore into Ratnagiri Gas and Power Pvt Ltd to enable the owner of the beleaguered Dabhol plant to clear pending dues of contractors. The GAIL Board has approved investment of additional funds to enable RGPPL to pay Punj Lloyd and its British partner Whessoe, the contractors for completing the unfinished LNG terminal adjacent to the plant. The board had earlier objected to GAIL, a promoter of RGPPL, lending Rs 500 crore to RGPPL on grounds that a public sector firm can only give loan to a sister PSU or a rated firm - RGPPL lacking both the qualification.