UPDATE 1-India's NTPC offers Qatar stake in plant - official http://today.reuters.com/news/articleinvesting.aspx?type=companyNews&storyid=68278+09-Oct-2006+RTRS&WTmodLoc=InvArt-L2-CompanyNews-2
Mon Oct 9, 2006
(Adds NTPC official's comment, share price)
MUMBAI/NEW DELHI, Oct 9 (Reuters) - India's state-run National Thermal Power Corp. Ltd. (NTPC.BO: Quote, Profile, Research) has offered the Qatar government a 40 percent stake in a gas-fired power project in southern Kerala state, an official from the Indian firm said.
"We have sent an MoU (memorandum of understanding) to Qatar and we hope that by end of Ramadan they will respond to the offer," the official, who did not wish to identified, told reporters at a conference, referring to the Muslim holy month.
Earlier, the Times of India newspaper had quoted NTPC's chairman T. Sankaralingam as saying the Indian power producer had offered a stake to Qatar's state-run investment company.
Shares in NTPC were up 0.5 percent at 131.30 rupees in a weak mumbai market.
NTPC runs a 350-megawatt power plant in Kerala and plans to expand it to a 1,950-megawatt unit by 2010-11, the report said.
"The Qatar-based body has been offered a stake in the project with a view to elicit a better gas purchase deal for the project," the Times said, without quoting any sources.
But, the NTPC official denied that the offer was based on gas sourcing.
"We are looking for Qatari investment and not gas, and depending on their response we will work out the equity structure," he said.
According to the daily, NTPC is planning to form a joint venture company for its Kerala expansion plans -- with 40 percent being offered to Qatar, and 10 percent being picked up by Petronet LNG Ltd. (PLNG.BO: Quote, Profile, Research), a gas firm which is setting up a LNG terminal next to the power project. NTPC would hold the remaining 50 percent.
Last week, India offered Qatar a stake of up to 12.5 percent in Petronet LNG, and also sought an extra 10 million tonnes of LNG from the Gulf state.
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