GMR Infra to add 1368 mw next fiscal

Infrastructure major GMR Infra is not likely to add any power generation capacity this year since most of its planned capacities are at an implementation stage.

Two of its projects would be operational only in 2011-12.

GMR currently has about 823 mw capacity at its various plants, including a barge- mounted one which was shifted from Mangalore to Kakinada recently.

“For the current financial year, the capacity will remain at 823 mw. In 2011-12 we will have expansion at Vemagiri and the fresh capacities at Emco will also become available,” A Subba Rao, GMR’s chief financial officer, said.

The company has a gas-based power plant at Vemagiri in Andhra Pradesh with 388.5 mw capacity.

It is adding another 768 mw to the plant at an outlay of Rs 3,400 crore.

GMR has acquired Emco’s power capacity of 600 mw. Both these plants would become operational in the next financial year.

The company is currently focused on commencing operations at its barge-mounted power plant. The 230 mw plant has been converted to operate on gas from naphtha with an outlay of Rs 600 crore. “The plant is expected to go into generation in June this year,” he said.

However, this capacity has already been included in the total installed capacity of the company.

The Kakinada plant, which would operate on merchant basis, is expected to add significantly to the topline.

Though it is negotiating with potential buyers, the company has already entered into a three-month contract with a buyer for selling power at Rs 5.20 per unit.
“Effective July, we will have more contracts,” he said.

While stating that the funding requirements of the company have been met completely as of now, Subba Rao said a $100 million private equity deal would be closed in the next few days.

The company currently has capital expenditure commitments to the tune of Rs 4,200 crore in the roads segment.

Of this, about Rs 650 crore would be equity and the balance debt, to be raised over a period.

In the energy sector, the company’s capex estimates are at over Rs 30,000 crore.

“The equity component of this would be about Rs 7,500 crore. We have raised over $600 million through QIP and PE route. In all, including the cash the company has, the total availability of funds is in the excess of about $1 billion. So the funding requirements are completely met for the projects on hand and we don’t have to raise any fresh funds. However, we will need to go for funding only on taking up any fresh projects,” he said.