GMR Energy to invest Rs400 cr to relocate project
GMR Energy Ltd, the subsidiary of Bangalore-based infra major, GMR Infrastructure Ltd, has finalised a Rs400 crore investment plan to relocate and restart its barge-mounted naphtha fired power project from Mangalore on the west coast to Kakinada on the east coast in Andhra Pradesh. The new plant will utilise the huge quantity of gas available for the Krishna Godavari basin and will be operationalised by March 2010.
The decision comes in light of the culmination its power purchase agreement with the Karnataka government in June last year. GMR existing plant at Mangalore operated on a merchant basis supplies power to the state grid at approximately Rs5.50 per unit. The barge will be shifted to Kakinada via the sea route by February 2010 and is expected to commence generating power within one month.
According to company sources, GMR has already acquired approximately 50 acres of land and begun civil work at Kakinada to facilitate the relocation.