Of the fresh 18 per cent foreign stake being brought in the company, Korea Heavy Industries and Construction Co Ltd is acquiring 11 per cent stake to become the fourth major investor in the project.

Third Millennium Investment Ltd -- an overseas corporate body (OCB) based in Mauritius, which presently holds 20 per cent equity is raising its stake to 26.90 per cent.

The equity holding of two other partners, Eastern Generation Services and Commonwealth Development Corporation of UK will remain unchanged at 30 per cent and 25 per cent.

The project was initially promoted by the south-based Lanco Industries Ltd.Kondapalli Power is setting up a 355 mw naphtha-based project in Andhra Pradesh.

The foreign investment envisaged initially was 75 per centwith Third Millenium holding 20 per cent, Eastern Generation 30 per cent and other parties 25 per cent.

Kondapalli Power's capital base has remained unchanged at Rs 330 crore even though the equity holding structure has undergone a change. Eastern Generation Services will bring in Rs 102 crore while Third Millennium Investments will have the second largest equity exposure at Rs 91.46 crore followed by Commonwealth Development Corporation's Rs 85.34 crore and Korea Heavy Industries' investment of Rs 37.40 crore. The total foreign equity in the project amounts to Rs 316.20 crore of the total paid up capital of Rs 330 crore.

The company's proposal to the Foreign Investment Promotion Board was supported by a board resolution, which has been made mandatory in case of foreign stakes being hiked in Indian companies. The proposal had also been cleared by power ministry. Industry sources said that the company's naphtha linkages had been almost tied-up, though the back-to-back arrangement with oil companies isstill to come through.

FIPB has also cleared the proposal of British Gas Plc to expand the operations of its holding company in India. BG has been allowed to act as project development company by rendering project development services in the gas, power and allied sector. The company also plans to offer technical advisory, management advisory and consultancy services in the energy sector and other activities relating to operation and maintenance of power plants, gas terminals, pipelines and allied energy sector plants.

The company's equity base is also being expanded from $5 lakh to $20 lakh.