GSPC to sell 49% stake in Pipavav power project

Gujarat State Petroleum Corporation (GSPC) is considering to divest 49 per cent equity in Pipavav power project, that it is implementing with Gujarat Power Corporation (GPCL).

Sources in the government and GSPC told PTI that a Mumbai-based Swan Energy, has submitted a proposal to buy 49 per cent equity in the power project.

"Having studied the proposal and different aspects, GSPC board has given formal approval for selling the equity to Swan Energy in the Pipavav power project," a senior official in the government said.

He added that Swan Energy will pay around Rs 400 crore to buy the equity.

A 700 Mw gas-based power plant, comprising two units of about 350 Mw, is being set up in a joint venture consisting GSPC and GPCL and is being implemented by a special purpose vehicle GSPC Pipavav Power Company.

The power plant, which is meant to cater the energy requirement of Saurashtra region, is likely to be commissioned by September 2010, sources said.

According to the project details, Tata Consulting Engineers has prepared the detailed project report and is also the technical consultant.