GMR GROUP Signs Memorandum of Agreement for its 160 MW Hydro Power Project in Arunachal Pradesh

GMR Infrastructure Ltd has announced that GMR Energy, the holding Company for the GMR Group’s energy business and a subsidiary of the Company, had signed the Memorandum of Agreement for implementation, operation and maintenance of 160 MW Talong Hydro Power Project on BOOT basis, in the district of Seppa, on River Kemeng, in the State of Arunachal Pradesh. This Project was awarded on competitive bidding basis.

DPR for this project has already been prepared and the project has also received first stage of environmental clearance from the Ministry of Environment and Forests, Govt., of India. The project is in the advanced stage of development, and subject to clearances from the appropriate authorities, the construction work is expected to commence in year's time. The total cost of the project on the present estimates is around Rs 900 crores. The first year tariff is expected to be most competitive and affordable, which is far below the present power rates from the north eastern sector.

The Company had offered 14% of Free power to the State of Arunachal Pradesh, and 02 (two) paisa / Kwh as additional benefit to the State. The Company had also offered 12% of equity to the state in the hydro Power Company. State of Arunachal has the right to purchase power from the Project over and above free power availed by it. The tariff shall be fixed by CERC.

The plant is scheduled to be commissioned by end of 2011. The Project envisages use of Innovative and state of art of technologies.

GMR Group is one of the leading Infrastructure players in the country with interests in Power, Airports and Roads.

The other power projects of the Company are:

- 200 MW LSHS: fired power plant in Chennai which commenced commercial operation in 1999.

- 220 MW naphtha: fired power plant in Mangalore which commenced commercial operation in 2001.

- 388.5 MW gas: fired power plant in Vemagiri (Andhra Pradesh) which has been recently completed.

- 140 MW hydroelectric power plant on the river Alaknanda in Uttaranchal which is under development.

Source : Equity Bulls

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