Hyderabad: The GMR Group, which owns a 220 MW gas based power plant in Andhra Pradesh’s Kakinada, will sell its barge-mounted power plant to a buyer for $63 million.
According to a regulatory filing, the infrastructure major has said that GMR Energy Ltd (GEL) will enter into a definitive agreement with the buyer soon. The filing, however, did not reveal the buyer’s name.
“GEL has entered into a memorandum of undertaking with an external party for sale of its 220 MW gas based power plant for a consideration of $6.3 crore and is in the process of entering into a definitive agreement and conclude the sale," the filing said.
According to GMR, the plant is operational since November 2001 and redeployed at Kakinada since April 2010. The company is exploring various commercial options for the plant, which did not generate power since 2013 due to shortage of natural gas.
According to the latest investor presentation of GMR Infrastructure, said the project cost of the plant was $90 million (Rs600 crore). A GMR official has declined to comment when asked about the development. GMR Group, which owns both gas and coal-based power plants in the country, has been suffering losses due to shortage of fuel.
The energy vertical of the group incurred losses to the extent of Rs179.95 crore during the quarter ended 30 June against loss of Rs95 crore in the same quarter a year ago. GMR shares traded at Rs16.20 apiece on BSE at 1410 hours.