GVK Power and Infrastructure Limited will complete 330 MW Alaknanda hydel power project and 540 MW Goindwal Sahib Thermal Power projects by April and May 2013 respectively. The company sees these two projects adding revenue from the energy vertical, according to G.V.K.Reddy, Chairman of the diversified Hyderabad-based GVK group.
The company also plans to invest about Rs 8,000 crore on the 850 MW Ratle hydel power project across the Chenab, in Jammu and Kashmir, which will be among the country’s major hydel projects.
The company has invited bids and expects to close funding by the year end. G.V.K. Reddy told shareholders at the company AGM that the focus has shifted from gas-based plants to hydel and thermal plants due to dwindling natural gas supply from the KG Basin.
FOCUS SHIFT
In fact, the situation further deteriorated during the first quarter of the current financial year, with a significant reduction in supply of natural gas. This has meant a drastic reduction in the generation of power.
“Keeping this in mind and with no reprieve in sight in near future, the company has decided to put on hold the proposed capacity expansion of the gas-based power plants. In fact, the EPC contracts signed were cancelled,” he said.
The energy vertical contributed to income of Rs 1731.24 crore, accounting for about 67 per cent of the company revenue.
The plant load factor has come down following reduced gas supply.