Qatar to set up power project in Kerala

NEW DELHI: Qatar Investment Authority, the apex investment institution of Qatar, is in talks with NTPC for a joint venture to develop the 1,950-MW Kayamkulam power project in Kerala. The PSU power company, which has been scouting for a strategic investor to ensure long-term gas supplies for its plants, is willing to tie up and become co-promoters if gas can be procured at competitive rates.

A high-level delegation comprising principal secretary to the prime minister, TKA Nair, and NTPC representatives recently visited Qatar to discuss the possibilities of the joint venture as well as future LNG contracts with the country. India has been importing LNG from Qatar for Petronet LNG’s Dahej terminal.

The Qatar company is ready to pick up a 49% stake. NTPC will formalise the joint venture only if LNG is assured for the plant at a reasonable rate, sources said. Although the proposal is still in the initial stage, sources confirmed that one way of getting LNG at a competitive rate could be by NTPC taking up an equity stake in the LNG company in Qatar.

NTPC had drawn out a strategy of diversifying into upstream sectors to secure fuel for its planned capacities. So, while it is getting into coal mining on the domestic front, the company is planning to get into LNG business abroad.

Speaking to ET, power secretary RV Shahi said: “The proposal is in the initial stage. The Qatar company is interested as NTPC will surely be interested in such a tie-up if it could get the gas at a reasonable rate. Worldover, there is a huge crisis for gas and securing gas supplies is becoming increasingly difficult.”