GMR Energy, the holding company of GMR group's power business, today said it will set up a 1,000 MW coal-based power project in Chhattisgarh.GMR Energy, a subsidiary of GMR Infrastructure, signed a memorandum of understanding (MoU) with Chhattisgarh government for setting up a 1,000MW power plant. The detailed project feasibility studies are expected to begin in a fortnight. The investment size, however, was not mentioned.With this project, the GMR Group now has projects with a total capacity of about 830MW under operation and projects with 2,440MW capacity in various stages of development, GMR Infrastructure informed the Bombay Stock Exchange.According to the terms of the MoU, Chhattisgarh is entitled to avail 5% of the net energy annually at variable cost, as determined by the appropriate regulatory commission, in case the company gets a coal linkage and 7.5% if it gets a coal block.Chhattisgarh has the right to purchase up to 30% power from the project for 20 years through its nominated agency.
