National Thermal Power [Get Quote] Corp, Gas Authority of India Ltd and Indian lenders will contribute Rs 500 crore (Rs 5 billion) each as equity of a Special Purpose Vehicle being formed to restart the Dabhol project in Maharashtra, Petroleum Minister Mani Shankar Aiyar said in New Delhi on Tuesday.

"An empowered group of ministers constituted by the government has decided to restart the Dabhol project and has suggested a restructuring package, the implementation of which would be carried out through the formation of SPVs," he said in a written reply to a question in Rajya Sabha.

NTPC would restart the 2184 MW power plant while GAIL would undertake gas/LNG sourcing and operation of the LNG terminal.

The Dabhol plant, promoted by bankrupt US energy major Enron Corp was shut four years ago after it ran into a payment dispute with its sole customer, the Maharasthra State Electricity Board.