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Adani set to acquire controlling stake in GSPC after IOC backs out

Adani already holds 25 percent stake in the state-run company and is set to get the controlling stake as the Gujarat government has been searching for a third partner

Ahmedabad: Adani Group is expected to receive an additional 50 percent stake in Gujarat State Petroleum Corporation (GSPC) by the Gujarat government. The move came following the Indian Oil Corp’s (IOC) decision to back out of the race to buy 50 percent stake in state’s Mundra LNG (liquified natural gas) terminal, government officials said. Adani already holds 25 percent stake in the state-run company and is now set to get the controlling stake as the Gujarat government, which owns 50 percent in GSPC LNG, has been searching for a third partner for the remaining 25 percent stake.

Looking at options

“We are looking at various options for commissioning the LNG terminal, which includes giving an additional stake to the Adani Group,” a government official said.

Mundra LNG terminal project

The state’s government had formed GSPC LNG as a special purpose vehicle (SPV) for implementing the project with a proposed capacity to re-gasify 5 million tonnes per annum (mtpa). The project was valued at around Rs 5,000 crore. Additionally, the capacity of the terminal can be expanded to 10 mtpa.

Prime Minister Narendra Modi in October flagged off the Mundra LNG terminal, which is the state’s third LNG re-gasification project following the Petronet LNG’s Dahej LNG terminal and the Hazira project Shell Gas BV.

“Certain agreements are yet to be signed and we are hopeful of resolving all pending issues. We will soon decide a date for commissioning the project,” another official said.