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Ap Clears Gvk Power Proposal

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BSCAL
Last Updated : May 16 1998 | 12:00 AM IST

The Andhra Pradesh cabinet yesterday cleared the proposal of GVK Industries Ltd to add another 240 mw to their gas-based power station at Jegurupadu. A power purchase agreement will be signed by the company with the Andhra Pradesh State Electricity Board shortly.

GVK Industries is the first among the seven fast track power projects in the private sector to become operational. It is currently generating 235 mw power which is being purchased by the Electricity Board. The central Electricity Authority has given in principle approval to the expansion which will involve an additional investment of Rs 750 crore. The first phase has cost Rs 816 crore. The Cabinet also agreed to the request of Oakwell Engineering of Singapore for a change in the technology for the 200 mw power project they have planned for Kakinada as short gestation period projects.

The Oakwells was to set up two units of 100 mw each based on open cycle diesel technology. They have now decided to opt for the more sophisticated combined gas turbine technology. According to the finance minister, Ashok Gajapathi Raju, who briefed the media on the cabinet deliberations, the change in technology would bring down the price of power from the earlier Rs 2.73 per unit to Rs 2.57 per unit.

The cabinet also agreed to the request of Satyam Computers Ltd to increase the capacity of their proposed short gestation power project at Peddapuram from the original 300 mw to 358.90 mw. The change was sought on technical grounds.

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First Published: May 16 1998 | 12:00 AM IST

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