GMR adds 384MW from its subsidiary to Andhra grid

GMR Group today said the first unit of subsidiary GMR Rajahmundry Energy Limited's combined cycle power plant at Vemagiri, in Andhra Pradesh, was synchronised to the state's power grid on December 9, adding 384 MW of electricity generation capacity to the grid.

The GMR Group is setting up the 2x384-MW combined cycle power plant adjacent to its existing plant at Vemagiri.

The first unit has been commissioned in a record time of 24 months.

The second unit is expected to be commissioned by February, 2012, GMR said in a statement.

This GMR project was identified as a XI Plan project and accordingly, was shortlisted for gas allocation by the government of India.

It is expected that gas will be made available to this project shortly, the statement added.

In another development, GMR Kamalanga Energy Limited (GKEL), another GMR Group company, has executed an agreement for supply of 260 MW of power to Bihar State Electricity Board (BSEB) under Case I bidding.

GKEL Managing Director K V V Rao said with this agreement, the company has tied up buyers for 85% of its power capacity under the tariff policy.

"This makes GKEL eligible to avail mega-power status under the new power policy of the government of India. GKEL is the first power project in the country eligible to receive mega power status under the new policy," Rao added.

GKEL is presently executing a 1,050 MW (3x350 MW) coal-based thermal power project at Kamalanga, in Orissa's Dhenkanal District.

Besides BSEB, GKEL has executed power purchase agreements with Grid Corporation of Orissa, Haryana Power Generation Corporation and Power Trading Corporation.

GKEL is expected to commence power supply from its first unit in mid-2012.

Shares of GMR Infrastructure were being quoted at Rs 18.35 apiece in early trade on the BSE today.