AP acquires GVK’s Jegurupadu unit for Rs 261 cr
Renames it as Godavari Gas Power Plant
For the first time in the country’s gas power sector, Government-owned entities, Andhra Pradesh Distribution Companies, have acquired a private sector owned 216 MW gas-based GVK Jegurupadu Power Plant located in East Godavari district for Rs 261 crore.
The AP power utilities secured third party appraiser value of the GVK plant at Rs 261.27 crore as against Rs 293.37 crore quoted by the GVK management. The GVK plant was the first private gas based plant to be set up in the country.
K. Vijayanand, Chairman and Managing Director, AP Transco, at a meeting today, handed over the cheque for Rs 261 crore to the representatives of GVK Group and entered into the purchase agreement. The plant and its operations were brought under the control of AP Genco and Discoms. It was renamed as Godavari Gas Power Plant (GGPP).
With this, the GVK Jegurupadu plant owned and operated by GVK Industries has become part of AP Genco. The plant was run on a power purchase agreement with the four Discoms of the combined State of Andhra Pradesh. The PPA was entered in April 1996 and expired in June 2015 after completing a period of 18 years.
With the acquisition of the plant, the AP Discoms see this as a strategic buyout which will help it manage its own gas plant and increase the generation capacity. It expects the gas plant to be handy for the Discoms to maintain the grid exigencies in an effective manner.
The plant has fuel linkage of gas and naphtha from ONGC/GAIL. The PPA was inked on April 19, 1996 and the project commissioned on June 20, 1997. The project is located on a 211 acre site and has a remaining life of 12 years.
The gas plant is located in lush green forest environment and spread over 211.735 acres. It is known for its clean and green environment. The plant has a private zoo spread over 10 acres and is home for birds and animals.