The Hindu Business Line : AP mulls setting up SPV for 2 mega power projects — Industrial tariff to be lower next fiscal

The Chief Minister asked the APGENCO to set up a 2100-MW gas-based combined cycle power plant near Hyderabad and 2x800 MW super critical plant at Krishnapatnam near Nellore.

Hyderabad , Jan. 4

THE Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, has directed the officials of the APGENCO (Generation Corporation) to consider the possibility of creating a special purpose vehicle (SPV) to facilitate the setting up of two mega power projects to meet the increasing demand for power in the State.

Reviewing the performance of APGENCO here along with the State Energy Minister, Mr Mohd. Shabbir Ali, and power sector officials, the Chief Minister asked the APGENCO to set up a 2100-MW gas-based combined cycle power plant near Hyderabad and 2x800 MW super critical plant at Krishnapatnam near Nellore.

The multi-stage Krishnapatnam project could potentially be increased to 4000 MW. The Chief Minister wanted the project to be commissioned by June 2008. This assumes importance given the projections of major gas find in the Krishna Godavari basin by ONGC, Reliance, among others.

He urged the APGENCO to select the SPV partner for project development through `expression of interest' in the newspaper. The SPV would ensure that project development activities get completed within 6-9 months against normal time of 2-3 years.

The review meet was attended by the Special Chief Secretary, Energy, Mr A.K. Goyal and the Managing Director of APGENCO, Mr Ajay Jain.

Industrial tariff to be lower next fiscal: Following the approval of the annual revenue rate by the Andhra Pradesh Electricity Regulatory Commission, the Chairman and Managing Director of AP Transco, Ms Rachel Chatterjee, said the industrial tariff would come down by about 14 paise per unit for next fiscal. Despite increased procurement costs, Transco managed to keep the rates constant for the fifth consecutive year.

Ms Chatterjee was speaking at a separate meeting after releasing a diary brought out by AP Power Diploma Engineers Association.