NEWS
India's Dabhol LNG project gets big tax breaks
New Delhi, Aug 12 (LNG Journal)
- India took another step to revive the $2.9-billion Dabhol liquefied natural gas and power project of bankrupt US energy giant Enron by announcing a waiver on LNG import duties and a tax holiday for the new owners.
The Dabhol project, on the coast of Maharashtra south of Mumbai in India's most industrialised state, is now owned by state-run gas transport company GAIL, the National Thermal Power Corp., and the Maharashtra State Electricity Board under an umbrella company called Ratnagiri Gas & Power Ltd.
The project, which is expected to be completed by July 2006, will be accorded a waiver on capital gains tax, LNG customs duty and will receive a 10-year tax holiday from the date of commissioning, according to the Indian Cabinet's economic affairs committee.
Ratnagri will own and operate the assets of the new company, but GAIL will be responsible for completing the project and operating the 5 million tonnes per annum LNG terminal.
GAIL announced on July 19 that the European-led consortium that was forced to abandon Dabhol in 2001 had agreed to complete it by July 2006.
Norway 's Kvaerner, the UK 's Whessoe, along with local construction company Punj Lyod Ltd., will complete the regassification tanks and other utilities for the LNG terminal.
The second contract for setting up marine facilities will be completed by a consortium led by Belgium 's Besix and the UK 's Kier Group, GAIL said in its July statement.
