GVK's Gautami power plant likely to be commissioned in September 2006

GVK International Group's Rs 1,300-crore Gautami power plant at Peddapuram in East Godavari district is likely to be commissioned in September 2006.

Speaking to Business Standard, V Rama Rao, technical director (power projects), GVK Group, said, "France-based construction major Alstom is currently engaged in executing the civil works of the 464-megawatt power project. As part of the agreement between GVK and Alstom, the latter is responsible for the construction of the project including erection, commissioning and maintenance. We expect the plant to start commercial production in September 2006."

The GVK Group has entered into an MoU with the Andhra Pradesh Transmission Corporation (APTransco) for sale of power generated at the Peddapuram plant.

As part of the deal, GVK will sell power to APTransco at Rs 2.12 per unit, which would translate into an annual revenue of Rs 300 crore for the Gautami Power Plant.

"The gas-based power plant at Peddapuram will receive supply of natural gas from the Gas Authority of India (Gail) as per the agreement entered into between the two. According to the agreement, Gail will supply 1.1 million cubic metres of gas per day in the first stage and 9 lakh cubic metres of gas per day in the second stage. In all, Gail will supply 2.3 million cubic metres of gas per day to the power plant," Rama Rao said.

Gautami power plant is the second power project of GVK group in the East Godavari district, the other being the Rs 750-crore plant established at Jegurupadu.

The group is currently expanding the Jegurupadu plant at an investment of Rs 720 crore. The expanded plant is likely to be commissioned by the end of 2005.

The group is currently executing a 200-megawatt power project in Uttaranchal at a cost of Rs1,400 crore. Another coal based 500-megawatt power project is also being executed in Punjab at an investment of Rs 1,300 crore. For this, an MoU had been signed with the Punjab Electricity Board, Rama Rao said.

The group has also taken up a 96-kilometre highway project in Rajasthan at a cost of Rs 600 crore. Plans are also afoot to construct five-star hotels in Chennai and Chandigarh, he added.