Mumbai, Dec 9: The Indian Oil Corporation has finalised equity pattern of its two power projects being planned for Panipat and Sawli, Gujarat. The plants are scheduled to be commissioned three to four years down the line.Larsen & Toubro has been allotted 24 per cent in either, whereas the Oil and Natural Gas Corporation (ONGC) has decided to confine its equity participation to Panipat. None of the financial institutions has been given a berth in either project though IDBI was reportedly keen on taking a stake.The 500mw Sawli project will have 26 per cent equity apiece from IOC and Mitsubishi of Japan. L&T will take up 24 per cent while the Gujarat government and Bharat Heavy Electricals (BHEL) will account for 13 per cent and 11 per cent respectively.
As for the 301mw Panipat plant, IOC and Marubeni will pick up 26 per cent each while L&T and ONGC will take 24 per cent and 20 per cent respectively. The balance four per cent has been earmarked for Engineers India.
Both projects will use refinery residue as feedstock. Their capacities will be increased to 1000mw once expansion of IOC's Panipat and Koyali refineries are complete.
Sources said ONGC could have opted out of the Sawli project as it has already decided to set up another plant in Gujarat along with the National Thermal Power Corporation. This will be a 300mw project to be commissioned in Surat. IOC was, at one point, tipped to be a third partner in the venture, but it eventually dropped out.
L&T has been keen on participating with some of the oil PSUs in the power segment. The company has teamed up with PSEG of the US to participate in the equity of Cochin Refineries' 500 mw power plant which will operate on the integrated gasification combined cycle technique. The duo will also participate in another 500mw project being planned by Madras Refineries and has been shortlisted with other bidders for Hindustan Petroleum Corporation's Vizag power plant.
It may be recalled that Destech of the US was the original co-promoter of the Sawli project but pulled out only to be replaced by Mitsubishi. The Japanese company was earlier shortlisted for IOC's 100mw power plant at Kosikalan which was based on the refinery residue from the Mathura refinery. The project, which was well within the Taj trapezium, was scrapped as it could have been a potential environment hazard.
Four companies are in the running to bag the EPC (engineering, procurement and construction) contract for the Sawli plant. They are L&T-Mitsubishi, ABB of Sewden, Ansaldo of Italy and Babcock of the UK. A decision on these bids will be taken during the next few months.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.