AP Genco to invest Rs 90,000-mn

Hyderabad: AP Genco, the State-owned power corporation, has turned the corner registering profits for the second consecutive year, wiping out accumulated losses and is on course to investing about Rs 9,000 crore to add about 2,324 MW.

For this addition, AP Genco has achieved financial closure and these projects are at various stages of implementation with 1,500 MW to be added by this fiscal end.

Power Finance Corporation and Rural Electrification Corporation and other lending agencies have provided the funding.

The corporation is poised to place orders for the 1,600 MW Krishnapatnam super critical thermal power project, and the 600 MW Kakatiya thermal power station.

The Chairman of AP Genco, Mr S.V. Prasad, said that the performance of the corporation has been significant with the company logging revenues of Rs 4,617 crore, a growth of 6.7 per cent over last year’s Rs 4,325 crore.

The company earned a profit of Rs 191 crore, an increase of 26.5 per cent over Rs 151 crore.

Significantly, this profitability comes in spite of non-recognition of Srisailam Left Bank Canal contribution.

Mr Prasad said the “State Government support has been extended in setting up new power projects. Keeping in view the future power requirements, AP Genco has taken up 17 projects with a total capacity of 9,155 MW with an estimated investment outlay of Rs 36,386 crore. This may look far fetched, but we are confident of implementing them.”

The Managing Director, Mr Ajay Jain, said that AP Genco’s average cost of supply per unit is amongst the lowest in the country at Rs 1.44 and it continues to ensure that power is supplied at lowest possible cost.

With an installed capacity of 7010 MW, thermal (3383 MW), hydel (3626) ad wind (2 MW), AP Genco contributes to about 56.6 per cent of the total State’s installed capacity of 12,381.5 MW.

With the addition of various projects under implementation, the State would move closer to self sufficiency, Mr Jain said.

In addition to the projects now under implementation, Mr Jain said that Genco was in the process of securing fuel linkages for the 2100 MW (700x3) Karimnagar gas based project, Rayalaseema thermal power station (600 MW), Polavaram (960 MW), Dummugudem (312 MW), Singareddypaly (200 MW).

“The 2100 MW gas unit has secured most of the clearances and is awaiting fuel linkage.

Negotiations are under way with ONGC, Gail, Reliance for gas supply. Once the legal issues relating to gas supply are sorted out, we expect to firm up with reliance,” Mr. Jain said.

During last fiscal, Genco added 459 MW which includes 210 MW Rayalaseema thermal Power Stage II and Priyadarshini Jurala each with 39 MW.