The country's largest liquefied natural gas importer, Petronet LNG Ltd may come out with a USD 100 million follow up public offer or a rights issue in 2011-12 to part fund a 1,200 MW power plant to be set up at Dahej in Gujarat.

Mr P Dasgupta CEO & MD of Petronet LNG said that the company may look at raising USD 100 million through FPO or rights issue. He said that the 1,200 MW power plant will cost INR 3,500 crore, 30% of which will be through equity contribution and internal accruals. The remaining 70 per cent would be debt.

Mr Dasgupta said the power plant which will use the imported liquefied natural gas as fuel, will be built in 33 months from the date of award of contract that may happen in the second quarter of 2010.

The 70% of the power generated at the plant will be sold to states like Kerala, Andhra Pradesh, Karnataka and Tamil Nadu.

(Sourced from Business Line)