Siemens Stake In Rpg Power Firm Dholpur

Siemens will pick up 15 per cent stake in R P Goenka-promoted RPG Dholpur Power. The company proposes to set up the country's largest naphtha-based power project at Dholpur, Rajasthan.

An Irish operations and maintenance contractor is likely to take 10 per cent stake in the project, estimated to cost about Rs 2,600 crore.

Goenka said negotiations were on with other companies for investment in the project "We would like Siemens to pick up at least 15 per cent," he, however, pointed out. ICICI Securities is identifying new equity investors for the remaining 75 per cent, with RPG likely to retain 35 per cent stake.

The debt component of the project is around $500 million, of which $150 million (Rs 525 crore) is the rupee component. ICICI is arranging the foreign debt component for the project.

RPG had submitted a report for the 778 mw project to the CEA last year. However, the CEA directed RPG Dholpur to reduce project cost by around Rs 100 crore earlier this year. The capacity was also reduced to 702.72 mw after the Centre gave a liquid fuel allocation for 635 mw.

Sources said RPG had brought down the capacity but did not reduce the capital cost. They said the RPG group was cross-subsidising the Balagarh project in West Bengal with the Dholpur project. Siemens is the equipment supplier for both projects.