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The Registrar of Companies has allotted the name to the SPV and the documents pertaining to incorporation have been filed.
The new company will own and operate the assets of the erstwhile Dabhol Power Company, GAIL said in a release on Thursday.
As promoters, GAIL would source the LNG required to run the power plant while NTPC would operate the plant and negotiate the power purchase agreement with Maharashtra state electricity utilities.
The company has already stepped up efforts to source LNG from Qatar, Iran, Oman, Abu Dhabi, Malaysia, Indonesia, Australia, Brunei, Egypt and Algeria, GAIL said.
The company would also complete the remaining works of the LNG terminal, which is 75 per cent complete, and also operate the terminal.
The capacity of the terminal is 5 million metric tonnes per annum, of which 2.1 mmtpa would be required by the Dabhol plant.
GAIL would develop the necessary infrastructure for the distribution of the remaining 2.9 mmtpa of regasified LNG in the gas markets in the catchment area, it said.
GAIL said the capacity of the LNG terminal, as also the power plant, could be further expanded to meet the power requirements of the western region.
The Dabhol plant has been lying idle for over four years after the MSEB stopped drawing power owing to payment disputes with the then main promoter Enron.