Dithering on firming up of equity pattern would make it impossible for Petronet, with authorised capital of Rs 1200 crore, to achieve financial closure and could delay the two projects beyond targeted 2002 by a year, company sources said.

The National Thermal Power Corporation (NTPC), which forced a change in equity pattern by insisting on acquiring substantial holding, is yet to confirm acceptance of stake as a promoter, Petronet sources said.

Due to delay in equity pattern of the fifty per cent stake of promoters, Petronet has also not been able to take a decision of the remaining equity in favour of financial institutions and public, sources added. Following the intervention of petroleum and power ministries, Indian Oil Corporation (IOC) and Bharat Petroleum (BPCL)withdrew from the joint venture and the 50 per cent equity would be shared equally by NTPC, Gas Authority of India Limited (GAIL) and Oil and Natural Gas Corporation (ONGC).

Prior to NTPC's entry, government had decided to incorporate the company with four national oil companies taking 12.5 per cent stake each as promoters.

Petronet would also not be in a position to sign the supply purchase agreement (SPA) with the LNG supplier Rasgas-Mobil Consortium in wake of these delays, they said. The holding company has also not been able to finalise the engineering, procurement and construction (EPC) contractor for the two terminals, sources said.

Without finalising these issues, signing of SPA could prove adverse to the Indian company as the contract with the LNG supplier would also have a take or pay clause, sources said. Petronet LNG is now planning to initial the SPA by May 15 with LNG supplier on an in-principle basis.