It may be recalled that Wartsila as EPC contractor had agreed to pick up 40 per cent stake in the project and Balaji group 40 per cent with the balance to be held equally by Finfund and Wartsila Development Fund, both from Finland.

However with Balaji finding it difficult to meet its financial commitment, according to a Wartsila official, the Finnish company had agreed to take a total of 60 per cent stake including the 20 per cent proposed for the two Finland-based FIs. But the equations have since changed with the project experiencing considerable delays. Wartsila will, according to Wartsila's MD Pradeep Mallick, now hold a minimum stake of under 20 per cent in the project.

Wartsila, it was said, would pick up an additional equity stake of 20per cent thereby taking its total stake to 60 per cent to become a majority stake holder in the Rs 410-crore project which has a equity component of Rs 130 crore and debt of Rs 280 crore.

However, Mallick told The Financial Express that as a policy the Finnish power major has decided to limit its equity holding in any power project to under 20 per cent and this will apply to the Samayanallur project as well.Mallick said the promoters of BPC were looking for a third equity partner and is likely to finalise this soon.

According to Mallick, the partner will have a "reasonably deep pocket" and more `financial commitment and experience in carrying out many independent power projects'.

A BPC official confirmed that the company will be tying up with a multinational power company with excellent track record for executing power projects. An agreement is expected to be signed next week, he said but declined to provide details of the financial structuring on account of confidentiality pact with the US firm. Oncethe pact is signed, financial closure of the project is expected to be completed by December this year.

The 106mw Samayanallur furnace oil-based power project is one of the few to have succeeded in getting escrow cover from the Tamil Nadu Electricity Board. Also a fuel-supply agreement is in place with Indian Oil Corporation to supply 1.33 lakh tonnes of low sulphur furnace oil per annum.

BPC is also reported to have tied up its debt component with ICICI and other institutions and banks in the country including a foreign line of credit of $60 million, some $20 million of which will be funded by Power Finance Corporation.

However, the promoters have been finding it difficult to finalise the equity structure and it is this which is expected to be hammered out next week with the US company roped in as the third equity partner.