Meanwhile, following a direction from the state government, GSPC has initiated talks to rope in Gujarat Power Corp as an equity partner for implementing the project.

The state-sector power generator's equity share in the project, though yet to be finalised, is expected to be non-controlling.

The Pipavav power project, conceived as far back as in 1990 by the then Gujarat state electricity board, was languishing until recently due to non-availability of long-term gas supplies.

The project could take off only after GSPC agreed to supply gas on a long-term basis. The project is envisaged to have a total capacity of 2,100 MW after implementation of capacity expansion envisioned under phase II and III.

On completion, the project is expected to provide a big relief to the state, which is facing an acute power shortage.