GMR Energy to invest Rs 18k cr by 2012

GMR group firm GMR Energy today said it would invest Rs 18,000 crore in the next three years to add electricity generation capacity and become nearly 3,300 MW company from the little over 800 MW now.

The company is operating three plants in India, 380 MW unit at Vemagiri in Andhra Pradesh, another 200 MW project in Chennai in Tamil Nadu, and a 235 MW plant in Mangalore in Karnataka.

Asked about funds, Raaj Kumar, CEO and Director, GMR Energy, told PTI, "These projects would be funded at a debt and equity ratio of 75:25. For the equity portion, we have internal accruals and short-term loans."

The company is in talks with various banks, including State Bank of India, Axis Bank, SBI Caps and others for finance of different projects. "These lenders have been with us for a long time," he added.

GMR Energy's projects in the pipeline include 1050 MW plant at Kamalanga in Orissa, 800 MW expansion at the company's running Vemagiri plant. It is also developing a 600 MW power project for its subsidiary Emco Energy.

These three projects are scheduled to be commissioned in 2012, end of 11th Five Year Plan.

The company is also setting up a 1,320-MW power plant in Chhattisgarh, which would be commissioned in early 2013.

"In Orissa we are investing Rs 4,540 crore, for Emco Rs 3,360 crore, Vemagiri is Rs 2,800 crore and Chhattisgarh Rs 5,500 crore," Kumar said.

GMR Energy is developing five hydro power projects -- three in India and two in Nepal. The financial closure for the company's 300 MW hydro plant at Uttarakhand would be complete by March, 2010."The financial closure for the 300 MW hydro power project in Uttarakhand would be done by March 2010 and after that it would take 54 months to complete the project," he said.

For the Emco project, the debt component would be arranged from Axis Bank, for the Chhattisgarh project and the gas-based project in Andhra Pradesh, the company is in talks with SBI.