Financial Daily from THE HINDU group of publications
Thursday, Apr 04, 2002
Industry & Economy
APGenco in talks with PFC to reduce debt burden
HYDERABAD, April 3
ANDHRA PRADESH Power Generation Corporation (APGenco) is currently holding discussions with the Power Finance Corporation (PFC) for swapping its high-cost loans with low-cost loans.
APGenco has secured loans from PFC to the tune of Rs 1,100 crore at interest rates ranging from 12.5 per cent to 16.75 per cent. Currently, the corporation has an outstanding debt of Rs 2,000 crore. Of this, debts amounting to Rs 450 crore were secured at an interest rate of over 15 per cent.
The APGenco Chairman and Managing Director, Mr J. Parthasarathy, told newspersons here on Wednesday that the corporation was taking steps to reduce interest burden by swapping high-cost loans with low-cost loans which would also help in reducing book losses.
The corporation had also saved Rs 100 crore last year by entering into separate fuel supply agreements with Singareni Collieries Company Ltd and Mahanadi Coalfields Ltd. These agreements had resulted in receipt of good quality coal, reduction in coal consumption and consequent savings. It had also saved Rs 7 crore by bringing down secondary oil consumption at the thermal power stations.
APGenco's turnover during 2001-02 stood at Rs 4,130 crore. It had spent Rs 1,100 crore towards interest and finance charges, Rs 438 crore towards O & M charges, Rs 336 crore towards repayment of debts and Rs 54 crore for working capital.
Mr Parthasarathy said that as reforms in power sector provided assured financial viability to APGenco, foreign and indigenous investors were showing keen interest in funding the four new power projects proposed by the corporation.
The new power projects were 420 MW Rayalaseema Thermal Power Project (RTPP) Stage II, 221 MW Jurala Hydro Electric Project (JHEP), 352 MW Dummugudem Hydro Electric Project (DHEP) and 660 MW Vijayawada Thermal Power Station (VTPS) Stage IV.
According to him, all formalities have been completed and the work on RTPP Stage II is likely to be commenced by CMEC of China soon on receipt of approval from the AP Electricity Regulatory Commission (APERC).
With regard to Rs 500-crore JHEP, to be set up on river Krishna, global tenders have been invited and the bids would be opened in June. The project is sought to be established with the assistance of the Japanese Bank of International Cooperation.
APGenco had prepared a detailed project report for the 8 x 44 MW DHEP which would be submitted to the Andhra Pradesh Government next month. The project would be established on Godavari river.
The detailed project report was also ready for the Rs 2,840-crore, 660 MW VTPS Stage IV which would be submitted to the Central Electricity Authority for techno-economic clearance after obtaining the approval of the State Government. Once the project was cleared, it would take six years to complete the super critical power plant.
APGenco is going in for establishing pumps at Bhavanipuram for three units at VTPS and cooling towers for the remaining three units to facilitate irrigation authorities to inspect and repair the Prakasam Barrage in dry conditions. The project, estimated to cost Rs 100 crore, is expected to be completed in 15 months.
The corporation, which came into existence in 1999, had contributed 64.8 per cent in 1999-2000, 62.4 per cent in 2000-01 and 59.7 per cent 2001-02 of the total power system demand in the State. Currently, it has an installed capacity of 5927.5 MW. Its average cost of power generation stood at Rs 1.61 per unit.
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