The Bombay high court has given its go ahead for transfer of assets of the 2,184 MW Dabhol power plant to Ratnagiri Gas and Power Pvt Ltd, paving the way for restarting the plant before the end of 2006.

The court gave its nod on Thursday for transfer of assets to RGPPL, the joint venture floated by power major National Thermal Power [Get Quote] Corp, Gas Authority of India and IDBI-led financial institutions.

When contacted, NTPC chairman C P Jain told PTI: "We will start work on the project as soon as the assets are transferred. The government has fulfilled all the commitments including granting of the mega power status to the project."

RGPPL would buy the entire assets from the financial institutions for Rs 8,500 crore (Rs 85 billion), informed sources said, adding for this the newly-floated company would take loan of about Rs 7,000 crore (Rs 70 billion) from the consortium led by ICICI [Get Quote].

Remaining money would come from the equity of Rs 500 crore (Rs 5 billion) each from three partners -- NTPC, GAIL and lenders, while another Rs 265 crore (Rs 2.65 billion) would come from Maharashtra Power Development Corporation, which has now been accepted as a direct partner instead of taking preferential share.

NTPC, GAIL and IDBI-led lenders have agreed on the consent terms for asset transfer. With the court's approval, RGPPL would not have to approach the Debt Recovery Tribunal for acquiring the assets of Dabhol project that has been shut since June 2001.

The court has appointed a receiver for handing over the Dabhol assets to RGPPL. This is expected to be done in about a month, sources said, adding the first phase of 740 MW is