After a gap of nearly five years, this is the first IPP in the state to achieve financial closure. Promoted by GVK Industries Limited, part of the Rs 2,000-crore GVK Group with diversified businesses, GVK Jegurupadu expansion project is being financed with 100 per cent debt on the back of the balance sheet strength of the promoter.
GVK Industries, which has been running a 235-mw natural gas-based power project since 1997, recorded a net profit of Rs 52.66 crore on an income of Rs 326 crore for the 2002-03 fiscal. The company's networth as on March 31, 2003 stood at Rs 399 crore, with a debt liability of around Rs 270 crore as on date.
The institutions have agreed to fund the expansion project at an interest rate of 10 per cent. The project has received the state guarantee recently, which enabled it to achieve the financial closure.
The project is expected to be commissioned in 22 months from the zero date i.e., December 31, 2003, and Alstom of France will be the EPC contractor for the expansion project with a configuration of one gas turbine and one steam turbine. The company has a firm allocation of 1.1 million cubic metres of gas per day, which is sufficient to run the plant with a full capacity.
Based on the current prices of natural gas, the fixed cost of the power generated by the expansion project will be 92 paise per unit, and the overall cost of the power (inclusive of variable cost) will be less than Rs 2 per unit.
The project, with a minimum guaranteed PLF of 85 per cent, received approval from APERC in April and signed PPA with APTransco on June 18.
