Gayatri Energy, Sembcorp JV for Andhra power project

Hyderabad-based Gayatri Energy Ventures Private Limited today signed a joint venture agreement with Sembcorp Utilities Private Limited of Singapore for setting up a super-critical thermal power project at Krishnapatnam, in Andhra Pradesh.

Sembcorp will invest Rs 1,100 crore in phase-1 of the project, which involves the establishment of 1,320 MW of power generation capacity. The project is being executed through a special purpose vehicle, Thermal Powertech Corporation India Limited.

Gayatri Managing Director T V Sandeep Reddy and Sembcorp Executive Vice-President Tan Cheng Guan signed the JV agreement in the presence of Andhra Pradesh Chief Minister K Rosaiah and Union Power Minister Sushil Kumar Shinde here today.

This is Sembcorp's first foray into the power sector in India. The company already has a presence in the Kakinada Seaport of Andhra Pradesh.

Reddy said the first phase of the power project would be completed in 40 months at a cost of Rs 6,869 crore, of which Rs 5,151 crore was debt and the rest equity.

"We will take up another 1,320 MW in phase-2 and the entire project (2,640 MW) will be ready in the next five years," he added.

Sembcorp Group President and CEO Tang Kin Fei said: "This project is a major strategic milestone for Sembcorp and marks its entry into the fast-growing Indian energy market."

Singapore High Commissioner to India Calvin Eu, GVK Group Chairman G V Krishna Reddy, Rajya Sabha Member T Subbarami Reddy, Videocon Chairman V N Dhoot, State Chief Secretary S V Prasad and others were present on the occasion.