Financial Daily from THE HINDU group of publications
Tuesday, Feb 05, 2002
Corporate - New Projects
Royal Dutch seeks extension of Hazira pact
NEW DELHI, Feb. 4
THE Royal Dutch Shell group of companies, which is setting up the $190-million (Rs 893-crore) LNG import and regassification terminal at Hazira in Gujarat, has sought the Foreign Investment Promotion Board's (FIPB) nod for the extension of its foreign collaboration agreement.
The company's current agreement with the Government expired in January.
In its application to FIPB, the company requested extension of the validity of the existing foreign collaboration agreement for two more years till January 5, 2004.
It informed the board that it had continuously pursued its job and spent substantial amount of funds since receiving the letter of intent (LoI) in November 1999.
It also said that it had already incurred heavy expenses on the project, more than $30 million so far.
This includes $11 million on detailed design and another $3.5 million in incorporating companies and physical activities at the project site.
The rest had been spent on development costs, consultancy fees and other statutory works.
The preliminary civil construction of the project commenced in August 2001 and orders for four LNG carriers had been placed with Mitsubishi Heavy Industries and Daewoo Shipbuilding and Marine Engineering Company Ltd.
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