Hyderabad: The Andhra Pradesh government has approved an additional Rs40,000 crore of investment to raise power generation capacity and bridge a demand-supply shortfall in the state.
State-owned Andhra Pradesh Power Generation Corp. Ltd, or AP Genco, obtained government approval on Monday for fresh capacity addition of 10,172MW through a combination of coal- and gas-based power projects and nuclear and hydel plants, managing director Ajay Jain said.
“We are planning to meet the funds requirement through a combination of 20% of internal accruals and some 80% of debt from domestic and international funding firms,” Jain told Mint.
The government had earlier approved projects to generate 4,728MW of power at a cost of Rs23,000 crore. Work has commenced on those projects, for which AP Genco has already tied up finances.
“We have already placed orders for plant and machinery of these projects and we expect these projects to be completed by 2012-end or early 2013, taking our total installed capacity to 12,316MW,” said Jain.
AP Genco has the capacity to generate 7,588MW of power now. The planned capacity additions would triple its installed capacity, helping Andhra Pradesh meet an annual peak shortage of 1,200MW. The state-owned utility hopes to generate internal accruals of some Rs2,000 crore over the next five years, Jain said.