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Tatas defer final move on Total venture

Our Bureau

MUMBAI, Oct. 27

THE Tatas have decided to wait and watch how the global oil and gas scenario unfolds over the next couple of months before taking a final decision on their investment in the Rs 2,500 crore LNG joint venture with Total of France.

High LNG prices have upset the viability calculation of the project and the promoters are awaiting a detailed report, expected to be ready by January.

Mr Adi J Engineer, Managing Director, Tata Electric Company, (TEC), said ``LNG prices have been rising in tandem with crude prices and we have to take this into account. We expect the situation will be clear by January.''

Addressing a press conference here on Friday, Mr Engineer said Gas Authority of India (GAIL) Ltd had agreed to pick up an equal stake in the project, originally conceived as a 50:50 joint venture between TEC and Total.

He said TEC would focus on power-related infrastructure, communications and energy. He said the Tata group was investing around Rs 5,000 crore in the communication business.

TEC alone had already invested about Rs 600 crore - Rs 300 crore in Andhra Pradesh, Rs 300 crore in Maharashtra - with another Rs 300 crore in the pipeline for Maharashtra.

TEC's optic fibre network of 450 km in Mumbai was progressing on schedule and will be ready by April.

Mr Engineer said about 10 companies in the Tata group such as Tata Cellular, Tata internet, Tata Infotech, besides TEC were engaged in the communication business.

Referring to the on-going projects, Mr Engineer said the 81-MW project in Belgium would be commissioned in December. The 240-MW Jojobera project was also on schedule.