India-based Sravanthi Group has announced its plans to relocate a 225MW gas-fired unit from the state of Uttarakhand to Nigeria in Africa.
Sravanthi took the decision after its INR18bn ($301m) worth 450MW gas-fired power plant was stalled due to the non-availability of gas to run the facility.
The company has entered into an in-principle agreement with a Nigeria-based Indian developer for a joint venture to develop the plant, reported livemint.com.
Sravanthi Group chairman and managing director D V Rao said the power plant is ready, but it has no gas to run the facility.
"We have an in-principle agreement. They (the Nigerian partner) are in the process of getting a licence to set up a 225MW power station," Rao added.
"We have agreed to invest a part of the equity. They will hold the majority stake. They also have the option of us doing the engineering, procurement and construction of the project.
"It will take six months for the transaction to be completed. We will retain the second unit here."
The company is set to loose INR1bn ($16m) as part of the civil and structural construction costs, while it is expecting to recover the losses by selling electricity in Nigeria.
The reduction in supply of gas has resulted from declining gas production at Reliance Industries’ D6 block in the Krishna-Godavari basin.