Jegurupadu Combined Cycle Power Plant, Phase II

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In January 2004, GVK group began construction of a 220 MW expansion of their existing Jegurupadu combined cycle power plant in Andhra Pradesh. GVK group signed a power purchase agreement with Transmission Corporation of Andhra Pradesh (APTRANSCO) in June 2003 to supply the additional 220 MW to distribution companies in Andhra Pradesh. APTRANSCO was created after Government of Andhra Pradesh initiated a comprehensive power sector reform in 1998 and functionally unbundled APSEB into one generation company, one transmission company (APTRANSCO) and four distribution companies. During the transition period and as of April 2005, APTRANSCO was operating under a single buyer model and procured power from generation companies for further sale to distribution companies. The 220 MW expansion achieved financial closure in January 2004, and was estimated to cost Rs 76,000 lakhs (US$ 167.7 million). The expansion was 100 percent debt financed by a consortium of financial institutions led by the Industrial Development Bank of India Limited (IDBI). GVK group has the authorization from the Government of Andhra Pradesh to expand the generating capacity up to 440 MW. The reduced capacity was due to lack of availability of enough natural gas to power the plant. Additional capacity up to the approved 440 MW was expected to be built in a later phase. Alstom of France was the EPC contractor for the expansion project. GVK signed a long term service agreement (LTSA), worth Euros 24 million, with Alstom in March 2004. The agreement included the supply of a gas turbine for the combined cycle power plant and also covered major inspections of the turbine. This ensured efficient and economic operation and maintenance of the new plant for GVK. The project was expected to begin commercial operation by November 2005. Need to check phase II's ownership percentage http://www.gvk.com/power.htm http://www.service.power.alstom.com/NewsAndEvents/news/262e236f010d2f632b51252f1e072e0b.html