GMR, Andhra sign pacts for Rs 33,000-cr projects

Infrastructure major GMR group today signed agreements with the Andhra Pradesh government to implement projects involving a huge investment of about Rs 33,000 crore.

GVK group is expected to sign MoU with the state government tomorrow entailing investment of Rs 10,000 crore, Sanjay Reddy, vice-chairman of GVK Power said.

While GMR is setting up a refinary-cum-petrochemicals complex, GVK is mulling to set up a 2,400 MW thermal power project in the coastal region of the state.

GMR signed the MoU with the state government on the first day of Partnership Summit-2012 which began here today.

"GMR will be investing Rs 30,000 crore and another Rs 3,000 crore in an integrated township," GMR Chief Operating Officer SG Kishore said.

This comes in the wake of ONGC withdrawing from the Kakinada greenfiled petroleum refinery and petrochemicals project.

GMR Group will pick up the divested stake and will end up being a 51% equity partner in Kakinada Refinery & Petrochemicals. IL&FS and Kakinada Sea Port will jointly own 46% and Andhra Pradesh Industrial Infrastructure the remaining 3%.

The project involves setting up of a 15-million tonne per annum greenfield petroleum refinery with a downstream petrochemical complex within a special economic zone.

GMR will be looking for a strategic partner for the project, the GMR official said.