The Hyderabad-based GVK Group has proposed to invest Rs 40,000 crore to create 6,000-Mw in Andhra Pradesh. This includes a 2,650-Mw coal fired thermal power plant in addition to the expansion of the two existing gas power projects by over 3,000 Mw.
The company on Friday signed four MoUs with the AP government in this regard at the Partnership Summit.
Though the group’s plan to set up the coal-based plant in AP is new, the revival of the proposed expansion of the existing gas power plants comes as a surprise as last year the company said it had deferred the move in the light of sharp fall in natural gas production in the KG Basin.
The infrastructure major is yet to give a final shape to the proposed coal power project in terms of location or the source of coal. However, it has maintained that the revival of expansion projects would be based on the possibility of new gas finds in the KG Basin and elsewhere in the near future.
“We are working on various options such as sourcing coal from our Australian assets or meeting the fuel needs from domestic coal linkages. With regard to the expansion of gas power projects, we want to be ready when the additional gas is made available through the possible new finds,” Krishna Ram Bhupal, managing director of GVK Power (Goindwal Sahib) told reporters on the sidelines of the summit.
He said the proposed thermal power project to be set up by GVK Energy Ventures Private Limited would be ready by 2017.
When pointed out the various loose ends in the proposal, Bhupal said the signing of the MoU would mean the project was at a preliminary stage.