HYDERABAD: GVK Energy Ventures Pvt Ltd will set up two coal-based power plants and expand their gasbased power plants over the next few years by investing over Rs 40,000 crore.
The company signed a memorandum of understanding with the state government on the projects at the CII Partnership Summit which concluded here on Friday.
Speaking to the media on the sidelines of the summit, managing director Krishna Bhupal said his company was planning two coalbased plants _ one with 6,000 mw capacity and the other of 2,640 mw capacity (2X660 mw super critical units in two phases). They will be coastbased projects with sea water cooling and a desalination plant. The site for the coalbased plants is yet to finalised as a feasibility study is still being carried out. The estimated project is about Rs 16,000 crore with a proposed debt and equity in the ratio of 4:1.
The entire power to be produced at the plants would be sold to AP Discoms. The company will source high grade coal from in Australia. "We will be sourcing coal from Hancock Mines in Australia with whom we have entered into a deal recently. Besides, we are exploring other sources of coal. The first phase of the new plants are expected to be operational by 2017 and the second phase by 2019,'' he said. While the coalbased power plants are expected to become operational by 2017, the capacity addition of its existing gasbased power plants at Gautami and Jegurupadu will depend on the supply of gas.
``The gasbased plants have been promised gas lines on a priority basis. We intend to expand as and when the fuel sources are available to us," said Bhupal.