GVK may sell gas power assets to Andhra Pradesh to settle Rs 18-bn debt

The latest valuations of these assets are higher than the outstanding project debt

Debt-ridden GVK Group is in talks to sell two of its gas-based power projects with 684 Mw combined installed capacity to Andhra Pradesh power utilities in order to settle debt of around Rs 18 billion through a one-time settlement (OTS).

While agreeing to take over the 464-Mw GVK Gautami Power and 220-Mw Phase-II of Jegurupadu Power as proposed by the company, the AP Discom has asked the project’s lenders to come up with their offer for sale of these assets, a senior GVK official said.

The two stranded gas power projects have been adding to the group’s losses for the past few