APGenco, Infra Leasing ink MoU for two power projects

The Andhra Pradesh Power Generation Corporation (APGenco) and Infrastructure Leasing & Financial Services Limited (IL&FS) signed an MoU to set up two mega power projects "� a 2,100-mega watt gas-based combined cycle power project near Karimnagar and a 1,600-mega watt super critical thermal power project at the port town of Krishnapatnam "� here on Wednesday.

D K Mittal, chief executive officer of IL&FS, and Ajay Jain, managing director of AP Genco, signed the MoU in the presence of chief minister Y S Rajasekhara Reddy.

In order to expedite the process of project development, APGenco has selected IL&FS as its partner for project development activities with regard to these two projects. A special purpose vehicle "� AP Power Development Company Limited "� has been formed to develop the projects in a fast-track mode, an official press release said.

The SPV will undertake the activities, which include site selection, land acquisition and obtaining all the statutory clearances. According to the proposed plans, subsequent expansion of the Krishnapatnam project will take its total capacity to 4,000 mw.

The development activities required to execute the projects would be completed within a period of six to seven months and the zero date for the gas-based project is expected to start by July 2006.

Similarly, the project development activities for the Krishnapatnam project is likely to be completed by November 2006, the press release stated.