Sources disclosed that another well-known foreign company, Elpasso, has also evinced keen interest in picking up equity in this project. These proposals, sources said, were under consideration of the RPG group and a decision to this effect is expected shortly. RPG officials refused to comment on the issue saying that talks with the concerned parties were at a preliminary stage. However, they did not deny the fact that Gail has approached them for acquiring equity in the project. Talks were also on for offloading another 20 per cent equity stake toCEPA, a subsidiary of US power major-Southern Electric. CEO and managing director of CEPA ED Kuester was in the country last month and sources said he held discussions with RPG officials over picking up equity in RPG Dholpur.

While itis almost certain that CEPA will pick up an equity close to 20 per cent in RPG Dholpur power company, no formal agreement has been signed as yet. With Gail and CEPA proposing to step in as potential equity holders in RPG Dholpur Power Company, the new equity structure of the company will comprise RPG group with a 35 per cent stake, Siemens AG with a 15.1 per cent stake, Gail with 29.9 per cent and CEPA with a 20 per cent equity.

With the project cost at Rs 2,400 crore, the debt-equity ratio of the project will be 70:30 which will mean that Rs 1,680 crore will come by way of debt and Rs 720 crore will be flushed in by way of equity.

Equity portion of Rs 720 crore will have a rupee component of Rs 252 crore and the balance Rs 468 crore will be the foreign exchange component.CEPA's share of 20 per cent will translate into an amount of Rs 140 crore. Besides picking up equity in the project, CEPA will also be the O&M contractor for the project and will get the latest technical know-how for managing the combined cycle gas turbines being used in the project.