GMR starts power supply to Gridco

The first unit of the company, having 350 Mw capacity, became operational in January this year

The first unit of GMR Kamalanga Energy Ltd (GKEL), having 350 Mw capacity, has started supplying power to the state-run power trader Gridco Ltd.

"Power produced from GKEL's first unit has been offered to Gridco as per the long-term power purchase agreement (PPA) executed with it, pursuant to the MoU with the Odisha government," said a company statement.

The first unit became operational in January this year. The company has plans to complete construction work of other two units very soon.

"Work on commissioning two other units of 350 Mw each in the first phase is in advanced stage and likely to be completed by August 2013," it said.

The Odisha project has been implemented on multiple package concept and is the third Independent Power Project (IPP) in the state to have started generation after Sterlite Energy and Arati Power.

The company had signed an agreement with the Odisha government in June 2006 to establish the power project. As per the agreement, the company has to sell at least 12 per cent of total generation to the state grid at variable cost, which is linked to coal prices.

The company has been allocated Rampia coal block jointly with Lanco Group, Sterlite Energy, ArcelorMittal India Ltd, Reliance Infrastructure and Navabharat Power Ltd.

Though the company had earlier announced to establish three units of 350 Mw power plant totaling Kamalanga project capacity to 1,050 Mw, it later decided to add one more unit of 350 Mw in its second phase expansion plan.