Pandian mediates GSPC-Adani row

Vol 13, PW 23 (06 May 10) News in Brief

Gujarat energy secretary DJ Pandian has been appointed to mediate in the continuing row between GSPC and Adani Energy over the equity split for the proposed 5m t/y LNG terminal at Mundra, the third on Gujarat’s coast.

GSPC, which holds 50%, first sent Adani the Mundra shareholder agreement back in June 2009, but Adani has not signed and returned it as it wants more than the 25% stake it has been allocated. But GSPC wants to give the remaining 25% stake to a ‘strategic’ partner, preferably one that can ensure long-term LNG supplies.

Fed up with waiting, Gujarat state authorities last month (April) told Pandian to urgently resolve the dispute by May 31. Pandian, a former GSPC managing director, immediately met his replacement Tapan Ray on April 23 and is expected to hold a second meeting with Ray this month (May).

“Pandian will then meet Adani,” we hear. Sometime in mid-May, it’s expected Pandian will call both sides together before hammering out a compromise.