Two Andhra PSUs acquire 216 MW gas power plant from GVK

Two power distribution companies of Andhra Pradesh government today acquired a 216 MW gas-based power plant at Jegurupadu in East Godavari district from private operator GVK Industries for Rs 261.27 crore.
The plant has been renamed as Godavari Gas Power Plant, according to managing director of AP Power Generation Corporation K Vijayanand.
Vijayanand, who is also CMD of Power Transmission Corporation of AP, signed the sale agreement and handed over a cheque for Rs 261.27 crore to representatives of GVK today.
This is the first time the public sector discoms have acquired a power plant from a private operator.
GVK ran the plant from 1996 and had a power purchase agreement with four power discoms in unified Andhra Pradesh. The PPA ended in June 2015.

Subsequently, the two discoms in the bifurcated state got a comprehensive assessment of the plant's operability and also got its value appraised by an independent appraiser as per the terms of the PPA.
Though GVK quoted Rs 293.37 crore for the plant, the independent appraiser valued it at Rs 261.27 crore.
While the total life of the gas-based power plant is 30 years, it has a balance of 12 years after having run for 18 years now.