GMR Energy eyeing select ultra mega projects

GMR Energy eyeing select ultra mega projects

Mumbai: GMR Energy, a unit of GMR Infrastructure, plans to bid for select ultra mega power projects and is scouting for more projects on the lines of its Emco Energy acquisition, a top official told Reuters.

“We will surely participate in domestic coal-based UMPP (ultra mega power project) bids which will possibly come up in Chhattisgarh and Orissa," chief executive officer Raaj Kumar told Reuters over the telephone on Tuesday.

Power Finance Corporation will soon initiate the pre-qualification process for three UMPPs, to be set up in the states of Orissa, Chhattisgarh and Tamil Nadu, according to media reports.

“UMPP coming up in Tamil Nadu is likely to be based on imported coal. We will need to review if we would be interested in bidding for imported coal-based UMPP," he said.

Listing, PE Stake

GMR group would require investments of around Rs30,000 crore for its power projects in the next four to five years, Kumar said.

“We require about Rs7,000-Rs8,000 crore of equity," and the group is looking at private equity placement as well as listing option for GMR Energy for some time now, he said.

“One year back we were working on IPO but did not take it further as the markets went down," he added.

Project Update

He said the firm is looking at few more power projects in central India on the lines of its recent acquisition of Emco Energy.

“We are looking at some more such opportunities in central part of India."

GMR Energy participates in various bids to supply power to utilities on a long term basis and has emerged as the lowest bidder to supply 200 MW power in one recent bid.

“We are L1 (lowest bidder) for sale of 200 MW to Mahadiscom from recently acquired Emco Energy project in Maharashtra."

The construction work at 800 MW Vemagiri Expansion project has already began and the turnkey construction contract is given to Larsen and Toubro, while other power equipments will be sourced from GE, USA and Alstom, Germany, he said.

“Financial closure for this project will happen by end November," while financial closure for 1,320 MW power plant at Chhattisgarh is likely by February 2010, he added.

Renewable Power

The firm is developing five hydro power projects and will take around 54 months for commissioning its first hydro project in Uttarakhand.

“Besides this, we have one hydro project each in Himachal Pradesh and Arunachal Pradesh. There are two projects in Nepal with cumulative capacity of nearly 1,500 MW, from which large quantum of power will be coming to India."

GMR group would like to enter nuclear power generation, whenever government allows private firms, Kumar said.

“As soon as the government opens this sector for private participation, then we will surely be there."