GMR Energy to invest Rs18,000 crore by 2012

GMR group company GMR Energy Ltd on Tuesday said it would invest Rs18,000 crore over the next three years to increase its electricity generation capacity to around 3,300MW from a little over 800MW now, reports PTI.

"These projects would be funded in a debt-equity ratio of 75:25. For the equity portion, we have internal accruals and short-term loans," said Raaj Kumar, chief executive, GMR Energy.
The company is in talks with various banks, including State Bank of India and Axis Bank, and has also approached SBI Capital Markets to mobilise debt funds for these projects. "These lenders have been with us for a long time," Mr Kumar said.
The company currently operates three plants in India—a 380MW unit at Vemagiri in Andhra Pradesh, a 200MW plant in Chennai and a 235MW plant in Mangalore.
GMR Energy's projects in the pipeline include a 1,050MW plant at Kamalanga in Orissa and an 800MW expansion at the Vemagiri plant. It is also implementing a 600MW project for its subsidiary, Emco Energy. These three projects are scheduled to be commissioned by 2012.
The company is also setting up a 1,320MW plant in Chhattisgarh, which will be commissioned in early 2013. "We are investing Rs4,540 crore in Orissa, Rs3,360 crore for the Emco project, Rs2,800 crore in Vemagiri and Rs5,500 crore in Chhattisgarh," Mr Kumar said.
GMR Energy is also setting up five hydro-power projects—three in India and two in Nepal. The financial closure for the company's 300MW hydro plant at Uttarakhand will be completed by March 2010, after which it would take 54 months to complete the project, he said.
He said the debt component for the Emco project would be arranged from Axis Bank and the company is in talks with SBI for the Chhattisgarh project and the gas-based project in Andhra Pradesh.
Yogesh Sapkale [email protected]
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