GSPC and Adani on Mundra

Vol 13, PW 25 (03 Jun 10) News in Brief

GSPC’s battle with Adani Energy over the equity carve-up of the Mundra LNG project will continue unresolved until after GSPC launches its IPO.

“Mundra can wait,” says a senior GSPC source, tersely. “The IPO cannot.

” In April, Gujarat principal secretary energy DJ Pandian was instructed to hammer out a solution by May 31. “Pandian met Ray already to discuss this on April 23 and was supposed to meet him in May,” he adds.

“But Ray has his plate full with the IPO. Mundra is on the backburner as far as he is concerned.

” GSPC with 50% is promoter of the Rs4500cr ($1bn) 5m t/y Mundra LNG import and regassification project while Adani with 25% is the other stakeholder. But Adani refuses to sign the shareholder agreement demanding 50% and a share of the marketing rights.

“Mundra is Adani turf,” says one observer. “GSPC can’t expect to proceed in Mundra without Adani.

They need each other and now the question boils down to financial engineering.”