GVK Power & Infrastructure Ltd is set to commission two expressways, two power plants, including the flood-hit Alaknanda hydel power plant, and the new international airport terminal in Mumbai during the current fiscal. The commissioning is expected to add to the cash flows of the company, which has been adversely hit by lack of natural gas supplies impacting two of its power plants, resulting in losses.
During the current fiscal, three companies under the energy sector — the 330 MW Alaknanda Hydro Power Company Ltd, 540 MW GVK Power (Goindwal Sahib) Ltd and GVK Coal (Tokisud) Pvt Ltd and two companies under the transportation sector — will be commissioned.
The two expressways include the 83-km Deoli-Kota Expressway and 102-km Bagodara-Vasad Expressway.
GVK Group Chairman G.V.K. Reddy told shareholders recently that the commissioning of these projects would add to the company’s revenue stream this fiscal.
The diversified infrastructure company is claiming insurance for the flood-hit Alaknanda hydel project, whose commissioning was delayed due to floods in Uttarakhand. The project, slated to be commissioned during the current monsoons, is now set to go on stream in the second-half of the fiscal.
Aviation hub
The company’s new integrated terminal T2 at Mumbai is at an advanced stage of completion. It has the capacity to handle 45 million passengers a year. The company is looking at converting the Mumbai airport into an aviation hub and international convention and business destination.
GVK Power had posted a loss for the first quarter ended June 30 mainly due to lack of natural gas supply from Reliance India’s KG-basin fields. In order to address fuel supply concerns and debt related to two of the three gas plants located in Andhra Pradesh, the company is in the process of rescheduling its loans with IDFC and IDBI.
While the poor performance of the power division impacted the quarterly result, the airport and transportation verticals fared well. The company is close to finalising a stake sale transaction for the airport vertical, where it expects to raise about Rs 2,500 crore. The move will help it wipe off all its debt, of about Rs 3,000 crore, at the holding company level.