Lying low for months, the State-promoted Gujarat State Petroleum Corporation Ltd (GSPC) has suddenly turned hyper-active.

Soon after the deal to buy 65.12 per cent stake in Gujarat Gas, it is now looking for bidders for equity investment to buy up to 49 per cent stake in its integrated power generation arm, GSPC Pipavav Power Company Ltd (GPPC).

Gas-based power plant

Jointly promoted by GSPC and Gujarat Power Corporation Ltd (GPCL), GPPC is currently developing a 702-megawatt green-field, gas-based power plant at Kovaya village in Amreli district at Rs 3,000 crore.

Its two units of 351 MW each are expected to be commissioned in December 2012 and March 2013.

Photo-voltaic solar power project

The company has also commissioned a 5-MW photo-voltaic (crystalline) solar power project in March 2012 at a solar park in Charanka village, Patan district, where it has invested Rs 65 crore.

For the Amreli plant, GPPC has executed an agreement with GSPC for long-term supply of 3.2 MMSCMD of gas.

With GSPC looking for more liquidity, the company had recently decided to invite expression of interest (EoI) for GPPC.

Following this, SBI Capital Markets Ltd, its financial advisor for soliciting equity participation, had on September 6, invited global EoI from interested parties for purchase of substantial minority stake, up to 49 per cent, by September 24, a GSPC official told Business Line.

The company is expected to take a decision on this soon.

(This article was published on October 6, 2012)
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