The Hindu Business Line : GVK Power may hike stake in Gauthami Power

GVK Power & Infrastructure Ltd, the listed entity and part of the diversified GVK group of Hyderabad, has hinted at hiking its stake in Gauthami Power from the current 41 per cent to 51 per cent.

In a statement to its shareholders, the Chairman and Managing Director, Mr G.V.K. Reddy, has said that this move to hike stake will make it a subsidiary of the company.

Gauthami Power Ltd, an associate company of the GVK, is implementing a 464-MW power plant at Peddapuram in Andhra Pradesh and is set to be completed during the current fiscal.

GVK had earlier acquired stake in Gauthami Power. This move to hike stake will consolidate its operations and add to the overall power generation capacity under the listed entity.

Phase II completed

Alongside, the phase II of GVK expansion has been completed earlier this year and would be able to generate power once GAIL (India) begins to supply gas. GVK Power & Infrastructure Ltd has GVK Industries Ltd as its subsidiary, which has a 216-MW gas based plant at Jegurupadu and the phase II is ready for operation.

Reliance, Gujarat Gas by 2008

One of the problems which most of the gas-based plants are facing in the country is the demand-supply mismatch of natural gas.

However, Mr Reddy in a recent conversation expressed his confidence that the new gas supplies from Reliance and Gujarat Gas are likely by 2008.

In any case, as per the power purchase agreement, there is a deemed generation clause.

During a recent meeting and earlier during the IPO, the Chairman of the GVK group hinted at the company bringing various unlisted entities under its umbrella, which will create a mega holding company.

This will add value to the company and its shareholders.

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