Vol 3, PW 14 (04 Aug 99) News in Brief

Indian Oil Corporation (IOC) has formalised an agreement with Japans Marubeni to construct a 301-MW power plant at Panipat in Haryana, fired by refinery residue.

The two companies signed a shareholder agreement on July 20th, paving the way for the setting up of a joint venture company called: Indian Oil Marubeni Power Company Ltd. IOC and Marubeni will hold 26% equity each and the balance 48% will be offered to Oil and Natural Gas Corporation (ONGC), financial institutions, the public, project associates and others. An IOC statement said the project is scheduled to be completed in 33 months from the date of financial closure.

Both parties signed an MOU on April 23rd this year. A draft Power Purchase Agreement (PPA) is under review with the local electricity buyer: Haryana Vidyut Prasaran Nigam Ltd.