Petronet LNG, India's biggest gas importer, plans to build two power plants for about 70 billion rupees ($1.5 billion) partly funded through a rights equity issue, the Economic Times reported on Thursday.

The plants will have a capacity of 1,200 megawatts each and will come up next to its two liquefied natural gas terminals in in the western state of Gujarat and in the southern state of Kerala, the newspaper said.

The company had said in August it planned to set up a power plant in Gujarat for 35 billion rupees and expected this to be completed in 2013.

The newspaper said the company was in the process of syndicating debt of about 50 billion rupees to develop the projects, and the remainder would be raised through a rights issue.

The company's board will meet on Thursday and approve land acquisition for the project. It will also prepare feasibility reports and a financial model, which should be ready by January next year, the paper said.

We expect to get the go ahead in January and we should be going to the capital markets by Q3 of 2010/11, Chief Executive P. Dasgupta told the paper.

And if all goes as planned, the power plants will be commissioned by 2012/13, he said.

Last month Dasgupta had said the company planned to raise up to 5 billion rupees through a follow-on public offer in fiscal 2011/12.

Shares in Petronet, valued at $1.15 billion, closed 0.6 percent down on Wednesday at 74.40 rupees. ($1=48 rupees) (Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)