BackFrench GDF Suez acquires 74% stake in Meenakshi coal-based power project
Meenakshi will retain 26% stake in the project; the 700MW capacity is expected to be commissioned by 2015
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Hyderabad: French energy company GDF Suez SA said on Tuesday that it has acquired 74% stake in the 1,000 megawatt (MW) coal-fired power project owned by Meenakshi Energy and Infrastructure Holdings Pvt. Ltd in Andhra Pradesh.
Meenakshi will retain 26% stake in the project.
The ₹ 6,000 crore power project, largely fuelled by imported coal, includes 300MW of operational capacity and 700MW under construction at Krishnapatnam in Nellore district.
The 700MW capacity is expected to be commissioned by 2015.
For the 300MW it produces, the company has signed an agreement with power trading firm PTC India Ltd, under which the state-owned company will supply coal to the unit in return for an equivalent value of electricity.
The Hyderabad-based Meenakshi Energy is into real estate and power.
“This initial project in India is in line with the group’s strategy of investing in fast growing markets and gives the Group an entry point into the Indian power sector through an economically attractive State," GDF Suez said in a statement, without disclosing the deal size.
The Economic Times newspaper on Tuesday reported that the deal size could be around ₹ 650 crore.
GDF Suez has a 10% share as strategic partner and shareholder in Petronet, the liquefied natural gas (LNG) importer and terminal operator.
GDF Suez is also currently developing with GAIL (India) Ltd a floating LNG regasification terminal with a capacity of 3.5 million tonnes per annum (MTPA), located in Kakinada, Andhra Pradesh.
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