GMR Vemagiri Power Generation Ltd, part of the diversified GMR Infrastructure Ltd, commenced power generation by synchronising its 388-MW plant with AP Transco grid from April 2.

The plant is expected to produce power at 60 per cent plant load factor using regasified liquefied natural gas (RLNG) made available by the Andhra Pradesh and Telangana Governments through GAIL (India) Ltd.

This arrangement is available till April 30, and may be extended further based on the requirement of power for both the States.

According to K Vijayanand, Chairman of AP Genco, the GMR Vemagiri unit and GVK’s Gauthami power project would be run by way of a gas swap arrangement that would be worked out.

The next step is to work towards a gas pooling mechanism, which would be a boon to gas-starved power plants and boost the power generation capacity.

Meanwhile, a consortium led by GMR Infra has been issued the Letter of Award for building 417 km of the Eastern Dedicated Freight Corridor railway project at a cost of ₹5,080 crore on the EPC (engineering, procurement and construction) basis, the company told BSE.

Lowest bidder

In November 2014, the GMR-led consortium emerged the lowest among five bidders for the project through an international competitive bidding process. The project, funded by World Bank, is divided into two packages. One is from Mughalsarai to Karchana (near Allahabad) for 180 km and the other from Karchana to Bhaupur (near Kanpur) for 237 km in Uttar Pradesh.

The project involves design and construction of civil, structures and track works for double line railway to be completed in 45 months. The Eastern and Western rail freight corridor projects are expected to be game changers in the country by creating the much required rail transportation capacity.

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