The Tata Power and British Petroleum combine, which is evaluating the 2,184 mw Dabhol power project, is likely to be expanded by roping in a third partner. The new addition may be the state-owned GAIL India.

Sashi Mukundan, country head - India, BP Gas, Power & Renewables, said , "We are looking at bringing in a third partner and are talking to several companies.

"We have to see which partner has the right capabilities in the venture. However, it is too early to comment any further." Sources familiar with the development said that GAIL is likely to be the third partner.

Proshanto Banerjee, chairman and managing director of GAIL India, said the corporation has already expressed interest in the project. "We have already discussed with the lenders of Dabhol power project that we are interested in marketing LNG imported at Dabhol's LNG terminal," he added.