AP Transco all set to buy Gas Based Power Plant

AP Transco is likely to purchase 216 MW capacity gas based power plant that was set up at Jegurupadu in East Godavari district from its promoters GVK Power very soon. AP Transco In-Charge Chief Engineer (Commercial) Sitarama Murthy wrote a letter to GVK Company inviting them to attend a meeting for discussing the final price of the project. The meeting between them is likely to take place on coming Monday and Tuesday at Hyderabad. AP Government has appointed Grant Thornton company as consultant to evaluate the power plant price and it estimates that it would be around Rs. 371 crores in total.

This plant has been operating under PPA mode from June 17th 1993. The agreement period was once again extended for 18 years on April 19, 1996. the state government wants to purchase the power plant from the GVK Power, since second agreement period was also over long back. But, the GVK is reported to be asking the state government to extend the agreement again and invest Rs. 500 crore for modernization of the plant.

According to initial agreement, there is scope for extending the agreement or for purchasing the plant by either party. So, the AP Transco wants to handover the plant from GVK Company paying an amicable price. Hence, it may be decided in the scheduled meeting between two parties.