Konaseema power plant eyes Rs 1200 cr turnover

The Konaseema power plant is targeting a turnover of Rs 1,200 crore during the current financial year following natural gas supply from Reliance Industries Limited.

The 460 Mw gas-based power plant, which was lying idle since 2006, requires 200,000 million cubic metre of gas per day.

“We had completed the construction of the power plant in 2006 itself. But, due to unavailabity of gas, the company could not take up power generation,” MSP Rama Rao, managing director, Konaseema Gas Power Limited, said.

The project is jointly promoted by VBC Industries, VBC Ferro Alloys and Elgi at a cost of Rs 2,035 crore. Of this , promoters’ share stood at 30 per cent while 70 per cent was debt from 10 banks with IDBI being the lead bank.

“The plant is getting gas supply on a trial basis from the last few weeks. Currently, we are generating 100 Mw, which would gradually be increased,” Rao said.

According to an agreement with the Andhra Pradesh government, of the total power generated, the company would transfer 80 per cent to the state power gird while for the remaining 20 per cent, the management will have the right to sell it to private parties.

The state government will give Re 1 per unit apart from gas cost, which will be another Rs 1.60 per unit.

“We are expecting Rs 6-8 per unit for the 20 per cent power,” he said.