Gas supply from RIL’s Krishna Godavari D6 block was down 8-10 per cent
Bottomline of the Hyderabad-based infrastructure company, GVK Power and Infrastructure Ltd, may be adversely impacted in the fourth quarter (January-March) of the present financial year due to the deficit in the supply of gas from the D6 block of Reliance Industries Ltd.
“To the extent, if gas supply falls, then the bottomline will be impacted. However, it is difficult to say the level of impact at this point of time,” Sanjay Reddy, vice-chairman of GVK, said on the sidelines of a CII event here.
He, however, said that market had already factored the issue of gas supply deficit to its power projects.
Recently, gas supply from RIL’s Krishna Godavari D6 block was down by 8-10 per cent, affecting power generation of four Andhra Pradesh power units. These units are GVK’s Jegurupadu and Gautami plants, GMR’s Vemagiri plant and Lanco Infratech’s Kondapalli power plant.
“Due to deficit of gas supply to power projects in Andhra Pradesh(AP), the government has now decided to supply RLNG for power generation. We expect it to receive it some time this week and the power generated will be supplied to AP grid,” Reddy said.
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Referring to the acquisition of overseas coal assets, he said the company was hopeful of closing some deal by the end of this year.
“We are constantly looking for overseas assets but are yet to be successful. We are hopeful of closing a deal by the end of this year,” he added.
Presently, GVK is in the race to acquire Hancock coal asset along with the other bidder, JSW Energy in Australia.
The infrastructure company, which has a focus on sectors like power, airport, road, urban infrastructure among others, is also in the process of bidding and selecting a construction contractor for a new terminal at the Bengaluru International Airport.
“Hopefully, construction of a new terminal at the Bengaluru International Airport should start in the next two months after the selection of the contractor,” Reddy said.
He also said, the company should start land monetisation at the Mumbai airport from the middle of this year after receiving the necessary approvals. The net profit of GVK was down by 8.71 per cent to Rs 41.91 crore in the three months-ended December 31, 2010, on the back of low demand and fuel shortage at its gas-based power projects.
Total sales of the company slipped by 29.39 per cent to Rs 459.56 crore during this period.