GVK Power and Infrastructure has unveiled plans to expand its gas-based power plants in Andhra Pradesh, but would wait for availability of gas before finalising the expansion.
On Friday, the company signed a memorandum of understanding with the state government for expansion of its two gas-based projects— Jegurupadu and Gautami—by 800 mw each. It also inked a deal for setting up two greenfield coal-fired plants of 2,400 mw each.
Currently, the Phase I of Jegurupadu project has a capacity of 235 mw and Phase II about 244 mw. Gautami has a capacity of about 464 mw.
The company is already facing problems with the existing capacities as gas supplies from the Krishna Godavari basin have become uncertain.
While the MoU has been signed, the timing of the gas project is still uncertain.
“It is true that the availability of gas has become uncertain. We will wait for the gas to become available before finalising on the expansion of the units. But we hope things will improve as we plan to expand the capacities. Hopefully, new gas finds too will become available by that time,” Krishna Bhupal, managing director, GVK Power (Goindwal Saheb), said.
The company was earlier keen on setting up only one 2,400 mw coal-fired plant in AP, but on Friday said it would now set up two greenfield thermal units in AP. The total outlay for the expansion is at about Rs40,000 crore.
“The thermal power units would come up in the coastal region of the state,” Bhupal said.
The company has been working on setting up fresh capacities for thermal power generation with its Australian coal asset Hancock likely to become available shortly for supplies.
On the funding plans, Bhupal said the company has kept all its options open for fundraising and the expanded capacities would only become available sometime in 2017.
“We are signing the MoUs with the state government and we will look at all the options to take the plans forward,” he said.
GVK is developing six more projects across the country with a total capacity of around 3,400 mw. Bhupal said the construction of the company’s 640 mw Goindwal Saheb power unit in Punjab is expected to be completed by 2013 as per schedule. GVK Power is developing this project at Tarn Taran, Punjab, at an investment of around Rs 3,000 crore.
GVK Power has plans to add 7,500 mw new projects by
2016-17.
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