GMR to raise Rs 400 cr debt for solar power

Bangalore-based infrastructure company GMR Infrastructure is close to raising around Rs 400 crore of debt to finance its upcoming solar project in Gujarat. Sources in the know said that the company is in talks with IDBI Bank to close the deal in the near future.

Earlier, the infrastructure firm received approval from the Gujarat government to set up a 25 Mw solar power project in the state, using photovoltaic technology for this project which will cost around Rs 500 crore. In addition to kickstarting its presence in this sector in Gujarat, GMR is also in talks with the Rajasthan government for another project. “Rajastan has come up with an encouraging solar power policy and we will bid for the new projects in the state, “ a top company official said.

Presently, 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. Projects of GMR Infra, which are under various phases of their implementation, are GMR Orissa power project, Talong power project, Bajoli project, Chhattisgarh project, Upper Karnali hydro-power project, Upper Marsyangadi project among others.

The company has a power generation capacity of 808 Mw by the end of December, 2010, and has 11 projects with a total capacity of 8,448 Mw in its portfolio. Of the projects, 4,138 Mw is under construction and 4,130 Mw is under development.

As per company officials, it is expected to add another 1,800 Mw of power in the present financial year to its present capacity. They also said that GMR was aggressively looking at increasing its solar power capacity in the future.

The energy vertical of the company has posted a marginal six per cent rise in its net profit to Rs 249 crore in FY11. However, its net declined around 70 per cent to Rs 37 crore during fourth quarter owing to deferred tax liability of around Rs 74 crore that had been accounted in this period.

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 previous 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 its operating profit to Rs 1,555.5 crore by end of March, 2011.