GMR may list energy arm to fund projects

Hyderabad-based infrastructure major GMR Group is considering listing GMR Energy, the holding company of the group's energy business, on the domestic bourses to fund its upcoming projects.

GMR Energy may also opt for raising resources through other routes.

"The company is certainly looking at means for raising resources to fund its upcoming and future projects. A decision in this regard may be finalised in the next two to three weeks," market sources said.

GMR Energy is a subsidiary of GMR Infrastructure, one of the two subsidiaries of GMR Holdings, the holding company of the group. GMR Industries is the other subsidiary of the holding company.

GMR Infrastructure, a listed entity, funds the capital needs of the group's energy, road and airport businesses.

GMR Energy currently has two operational power projects "� in Chennai and Mangalore "� with a cumulative capacity of 420 mw.

The 388.5 mw Vemagiri plant at Rajahmundry in Andhra Pradesh would start generating power shortly.

It has got five projects under development "� 140 mw hydroelectric power plant in Uttaranchal, 1,050 mw coal-based plant in Orissa, 160 mw hydro-electric project in Arunachal Pradesh, 1,000 mw coal-based plant in Chhattisgarh and 180 mw hydroelectric project in Himachal Pradesh.

Estimated to cost about Rs 700 crore, the Uttaranchal plant of GMR Energy is expected to start commercial operation by 2011-12.

The 1,050 mw coal-fired project at Kamalganga in Orissa is expected to go on stream by the end of 2010.

GMR Energy expects its Arunachal project to be commissioned by the end of 2011-12. Time-frame for the completion of the two other projects "� in Chhattisgarh and Himachal Pradesh "� are yet to be decided by the company.

The group is also gearing up to foray into nuclear power generation and has already readied a team aiming to be the first Indian company to enter the sector.

Besides, the company is also looking at acquiring some coal assets and operational energy assets abroad, sources said.