Power News We love to talk!
Hyderabad-based GVK Power & Infrastructure, which reported a loss in the quarter ended June, its third consecutive consolidated net loss, expects to return to profit by the first quarter of the next financial year.
The company, whose operations span diverse sectors, including energy, airports, transportation and hospitality, is set to commission the 540-Mw Goindwal Sahib Thermal Power project in Punjab and the 330-Mw Alakananda Hydro Electric Power project in Uttarakhand in the first quarter of 2013-14.
“There is no fuel risk for both projects. There is sufficient water flow in the Alakananda river for generating hydel power, and we have captive coal mines for producing thermal power. After these projects are commissioned, our balance sheet would turn positive,” Chairman and Managing Director G V Krishna Reddy told Business Standard.
The company had recorded a net loss of Rs 64.30 crore in the quarter ended June, compared with a net profit of Rs 33.67 crore in the corresponding quarter last year. Reddy attributed the loss to “the lack of commitment by the government for supply of gas” to its three power projects in Andhra Pradesh. “We have over 900 Mw of installed generation capacity, but are unable to generate even 30 per cent of it due to inadequate gas supply,” he said.
He added owing to the acute shortage of power, the government had considered importing liquefied natural gas (LNG) to enable gas power plants to enhance capacity utilisation.
“If they give LNG, our company will become profitable as early as tomorrow,” he said. The primary drawback in operating power plants on imported LNG is the high generation cost---about Rs 8 a unit. Reddy, however, said, “Industries are interested in purchasing power even at that cost.”
Reddy said for the company’s airports business, it was likely to rope in an equity partner in a few months. “Many people have evinced interest in this regard. The due diligence process is on,” he said.
The company had borrowed about Rs 3,000 crore to buy an additional 13.5 per cent stake in the Mumbai airport and 14 per cent stake in the Bangalore airport, he said. It intends to raise Rs 2,500-3,000 crore by roping in an equity partner and repaying the borrowed amount. On the acquisition of assets of Australia’s Hancock Group, which include coal mines, a railway line and a port, Reddy said the company expected to raise $2-3 billion by bringing in other equity partners at the level of holding company GVK Coal Developers (Singapore).
“It (Hancock) envisages a $10-billion investment. Each of the three verticals---coal, rail line and port---would be developed as independent entities, like our Mumbai and Bangalore airports,” he said.
- Coal Ministry demands PPA status from 8 cos Read more
- Power your investments in India Read more
- Petronet LNG plans to raise Rs 600 crore via non-convertible debenture Read more
- Coal Ministry examines CRISIL bid for consultancy contract Read more
- Hybrid device combines solar, wind energy Read more
- Power purchase rules changed Read more
- Petrol, diesel prices rise on Tuesday after 19-day freeze Read more
- Protests in Tripura amid rain, soaring fuel prices Read more
- Clarify stand on thermal plants air pollution: NGT to CPCB Read more
- Koldam Hydro Power Station achieves record PLF (%) in India Read more