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V. Rishi Kumar

Hyderabad, Jan. 3

Following recent parleys with Reliance Industries Ltd, the Hyderabad-based GVK Power & Infrastructure Ltd is poised to commission Jegurupadu Stage II and Gauthami power plants by middle of this year.

“We have had discussions recently with officials of Reliance Industries Ltd, who have assured us of supply of required gas from the Krishna Godavari Basin by July 2008. This would enable us to commission both these plants,” Mr A. Issac George, Chief Financial Officer of GVK Power & Infrastructure, said.

Speaking to Business Line, Mr George said that while it would take about couple of months to stabilise both these units after assured supply from the KG Basin, by the second quarter of next fiscal, both these units are likely to go on stream based on the fuel linkage assurance.

These two plants would add 694 mw, which includes 484 mw of Gauthami Power and 230 mw of Jegurupadu stage II, the latter, which is awaiting fuel supplies since September 2007.

Asked about the recent Government move to encourage fuel generation by using costly naptha and high speed diesel (HSD) as fuel to tide over power shortage, Mr George said that while the Jegurupadu project has been designed to take naptha, it cannot handle HSD.

Significantly, with current naptha cost at Rs 46,000 per tonne, per unit cost of power generation would work out to about Rs 8.50 to Rs 8.75, which other independent power project of Lanco also quoted and estimated.

“However, in our case, we would not be able to generate power through HSD as being made out by the Government,” he said.

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