Bangalore-based GMR Infrastructure, which has interests in power generation, airports, highways and urban infrastructure, is understood to be mulling over a plan to move its barge-mounted power projects to the shores of Turkey.
This barge-mounted power generation unit, capable of producing 220 Mw, is off the Mangalore coast and is being operated as a merchant plant. The move has been necessitated following the expiry of the seven-year old power purchase agreement (PAA) with Karnataka. GMR, post the end of the PPA with Karnataka, had planned to move this naphtha fuelled project to near Kakinada in Andhra Pradesh and had planned to convert this to a gas-fired project. “This plan had to be shelved as gas was not available from the K-G Basin for this project,” a senior official of GMR Energy said.
While for some period of time this project will remain off the coast near Mangalore, GMR is working on a plan to move the project near Turkey. “There is no problem of gas near the coast there and it is one of the reasons for this thought,” he added.
The company is having to scout for gas supply for this project as the prices of naphtha have been rising sharply and there aren’t many buyers for costly power. The cost of naphtha has shot up nearly ten times to Rs 48 a litre from Rs 5 a litre seven years ago.