GMR Energy to raise Rs 370 crore in debt

For its two transmission projects.

GMR Energy Ltd, the energy subsidiary of GMR Infrastructure, is close to raising around Rs 370 crore in debt for achieving financial closure of two of its power transmission projects in Rajasthan.

These two transmission projects have been awarded to the company in October 2010 by Rajasthan Rajya Vidyut Prasaran Nigam (RRVPN). As per the contract, it would set up 400 km of 400 KV transmission lines with two power sub-stations based at Alwar and Deedwana. GMR will operate and maintain these projects for the concession period of 25 years which will also include an estimated period of two years for commissioning of the project.

"GMR is in talks with IDFC to raise around Rs 370 crore of debt for achieving financial closure in two of its transmission projects in Rajasthan," sources in the know said. They, however, declined to give any time line for this transaction.

GMR has three completed energy projects namely barge mounted power plant at Kakinada, 200 MW power plant in Chennai and Vemagiri plant in Andhra Pradesh. The total installed power generation capacity is 808 Mw by March, 2011, and has 11 projects with a total capacity of 8448 MW in its portfolio. Of these, 4138 MW capacity was under construction and 4130 MW was under development as of March 31.

The projects of GMR Energy, which are under various phases of implementation, are GMR Orissa power project, Talong power project, Bajoli project, Chhattisgarh project, Upper Karnali hydro-power project, Upper Marsyangadi project among others.

GMR posted a loss of Rs 929.64 crore in the last financial year as compared with a profit of Rs 158.4 crore in the corresponding period last year.

Revenue rose by 26 per cent to Rs 5,773.8 crore during this period. Meantime, the company has posted a 14 per cent increase in operating profit to Rs 1,555.5 crore by end of March, 2011.