GMR may exit waste-to-energy project in Delhi

Even as the efforts to sell its stake in the global power generation company Intergen are still at an evaluation stage, GMR is expected to put its waste-to-energy plant in Delhi on the block.

The project was to come up at the Ghazipur landfill in Delhi. Located in about 5.7 acres, it has an outlay of Rs140 crore to generate 10 mw. GMR has partnered with Selco to execute the project and operate for 25 years.

As per the agreement, operations were to start by 2010-end  with 49% of the electricity generated going to BSES Yamuna Power Ltd, while the balance may be used either for captive consumption or for sale to a third party.

According to sources, the project is not proceeding as per schedule and the group is finding it challenging to handle the project.

“It is a completely different project and GMR has never handled such a project. Though known for power generation, GMR’s capacities are thermal, gas or hydro. Waste-to-energy is a different process and GMR in all likelihood would exit the project,” a source told DNA.

A company spokesman said, “The waste-to-energy project is in different stages of implementation. Any talk about its divestment is purely speculative in nature.”

However, sources said GMR is in touch with some potential buyers and a deal, though it would not be significant in terms of the valuation, would be concluded shortly. “Like in Intergen, the sell-off would depend on the price it gets. With or without a buyer, GMR would continue to develop the project. If there is an attractive offer, the deal would materialise,” the source said.