GSPC-Swan plan to raise Pipavav plant capacity

State-owned Gujarat State Petroleum Corporation (GSPC), in association with Swan Energy, is all set to increase its Pipavav power project capacity from 1600 Mw to 2100 Mw. The project is in the process of going on stream with about 700 Mw.

The project expansion is pegged at about Rs 2,500 crore. GSPC has offloaded 49 per cent stake to Mumbai-based Swan Energy for about Rs 400 crore, sources said.

“The overall project cost for setting up the 2,100-Mw power plant now stands at about Rs 10,000 crore. GSPC is currently in the process of transferring 49 per cent equity to Swan Energy,” said government sources close to the development.

Meanwhile, GSPC has begun talks with Gujarat Urja Vikas Nigam Limited for entering into a long-term power purchase (PPA) agreement for 700 Mw.

A special purpose vehicle by GSPC Pipavav Power Company Limited was set up for the Pipavav power plant in association with Gujarat Power Corporation Limited (GPCL).

The Gujarat government expects four power plants around the Pipavav port in the state to be operational by the year 2012.

GPCL and Torrent Power Limited are jointly developing a coal-based power plant of 1,000 Mw near Pipavav. Visa Power is in the process of setting up a 1,000-Mw power project while Videocon is aiming to set up a 1,000-Mw coal-based power project for which it has approached Gujarat Pipavav Port Limited, sources said.