GVK group to invest heavily in Punjab's power sector

Hyderabad-based GVK Power & Infrastructure Ltd (GVKPIL) is keen to invest in the power sector in Punjab.

The company, which is setting up a 660 Mw thermal power project at Goindwal Sahib, Amritsar, at a project cost of about Rs 3,000 crore, has also plans to set up a thermal power plant at Talwandi Sabo (1,800 Mw) and another coal-based thermal power plant near Rajpura (1,200 Mw).

These projects are likely to attract an investment of Rs 12,000-14,000 crore. Besides, the company has also plans to modernise Amritsar International Airport in Punjab.

The GVK group is a diversified business entity with a predominant focus on infrastructure and urban infrastructure projects. It also has a significant presence in the hospitality, services and manufacturing sector. Recently, the group has consolidated all the infrastructure assets under the single umbrella of GVK Power & Infrastructure Ltd (GVKPIL), making it an integrated infrastructure player.

In an interaction with Business Standard, GVKPIL chairman and managing director, G V Krishna Reddy, said, "With these projects in hand, we will be producing about 2,400 Mw in five years. The company is establishing two hydro-power plants of 330 Mw and 370 Mw in Uttrakhand and a coal-based thermal power project, having a capacity 660 Mw, at Goindwal Sahib in Punjab."

Currently, it is operating three gas-power plants in Andhra Pradesh with a combined capacity of 900 Mw. He added that a 330 Mw hydel project near Srinangar, in Pauri district of Uttrakhand, was scheduled to be completed by 2011.

The construction of the project in Goindwal Sahib will commence in a few weeks.

"We need about 1,100 acres for the project; further, we are hopeful that the acquisition process by the state government will be completed very soon," he added.

Besides, the company has also bid to set up a thermal power plant in Talwandi Sabo (1,800 Mw) and another coal-based thermal power plant near Rajpura (1,200 Mw).

Also, the group, which is modernising Chhatrapati Shivaji International Airport (CSIA), Mumbai, has also issued an expression of interest for modernising Amritsar International Airport in association with the Leighton Consortium.

The Punjab government plans to add 3,500 Mw to the existing generation capacity. The present generation capacity of the state is only 6,200 Mw, whereas the peak demand is 9,000 Mw, leading to a shortfall of 30 per cent.

So, in order to meet the shortfall, the state government has drawn up a comprehensive programme of generation capacity addition comprising Lehra Mohabbat Phase-II (500 Mw), Goindwal Sahib Thermal Power Project (660 Mw), Talwandi Sabo Thermal Power Project (1,200 Mw) and Nabha Thermal Power Project, Near Rajpura (1,200 Mw).