Cabinet okays Shell, Reliance LNG plans
Our Infrastructure Bureau
New Delhi, Dec 29: The Cabinet Committee on Foreign Investment (CCFI) on Monday approved foreign investments worth $650 million (Rs 2,535 crore), including a Reliance Industries' proposal to raise foreign equity to part-fund its two liquified natural gas (LNG) terminals.The committee also gave its approval for the proposal of the Royal Dutch Shell group of companies to set up a wholly-owned subsidiary for operating LNG import terminals at Hazira and Surat in Gujarat. It allowed BPL Cellular Holdings to sell 2.85 million equity shares on a par value of Rs 10 each by group company Astra Telecom Private Limited to a financial services company in Mauritius. Reliance Industries proposes to raise Rs 1,150 crore through the issue of global depository receipts or American depository receipts and through private placement, to part-fund its two LNG receipt terminals at Jamnagar and Hazira. The terminals have a capacity of 5 million tonnes each, along with capacities for storage and regassification of
LNG. Reliance informed the CCFI that a number of industries in the private and public sector had shown interest in drawing their natural gas requirements from the LNG terminals. The company is now drawing up appropriate fuel supply agreements with customers in Gujarat, Madhya Pradesh and Maharashtra, which will be connected to the terminals through feeders. The pipeline network will cost Rs 2,500 crore. Reliance Industries is believed to be undertaking a route survey and customer networking.The Royal Dutch Shell group of companies was granted approval a month ago for setting up a wholly-owned subsidiary to operate its LNG import and regassification terminals. The $540-million project received the nod of the CCFI as well on Monday. The project will have a foreign equity of $162 million. The Royal Dutch Shell LNG terminals, proposed to the west of Hazira village in Gujarat, will supply natural gas to Essar Power Limited and Essar Steel Limited at Hazira. The terminal may be expanded to cater for the
demand of other power generating projects based on LNG. BPL Cellular Holdings had on October last year, been allowed to raise $ 200 million of American depository receipts, with a greenshoe option of 15 per cent. In November this year, the company put in a fresh request with the centre for selling 2.85 million equity shares on a par value of Rs 10 each to CDC Financial Services of Mauritius. The sale will be effected by Astra Telecom, which is a BPL group company, holding shares in BPL Cellular Holdings.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
|
