GMR plans Rs 500 crore capex

GMR Energy, the Rs 2,800 crore GMR Group promoted company, has lined up a capital expenditure of around Rs 500 crore through a combination of debt and equity over the next 12 months for its 3 power projects in Karnataka, Tamil Nadu and Andhra Pradesh.

The company is also looking at increasing the capacity of its 370 mw gas-powered Vemagiri power project in Andhra Pradesh substantially.

The plant which will be operational by January 2006 is being built to handle a capacity of 1,000 mw.

The company, based on various fuel arrangement and power purchase agreements with the Electricity Board, will take a decision over the next six months.

GMR Energy on Thursday also announced the flow of Rs 100 crore of equity from India Development Fund (IDF) by divesting 15 per cent of its stake.

The investment is the first ever from IDF in India which is managing funds to the tune of around Rs 1,000 crore.

Said G B S Raju, Director, GMR Energy: "We have always believed in nurturing healthy relationships with our partners, customers, bankers and the society. We believe IDF's investment in our companies will certainly foster our growth objectives and create value in the energy sector."

Added Luis Miranda, President & CEO of IDF Asset Management: "We wanted our first investment to be a landmark one. We believe that the GMR Group has built up an excellent business in the energy sector, with two power plants of international standards. Before it was fashionable to focus on infrastructure, the Group had already stated its commitment to this sector. We are excited to partner the GMR Group."

GMR Energy's current power projects are expected to generate a total power of 800 mw and the company has committed an investment of Rs 2,500 crore for the same.

The GMR Group in addition to power projects are also the promoters of the Greenfield international airport project in Hyderabad and is also involved in other projects promoted by the NHAI.