GMR’s hopes now ride on AP’s higher power cost scheme
“If the expensive power supply scheme in Andhra Pradesh takes off well, then all our projects will start firing on all cylinders,” said A Subba Rao, Group CFO, GMR Infrastructure. He also said the gas pooling mechanism is expected to kick in by mid 2013.The company expects performance of its energy business to improve when it commissions two coal-based plants this fiscal.
The Andhra Pradesh electricity regulator recently approved an Expensive Power Supply Scheme, which would enable power plants, currently lying idle because of the gas supply shortage from KG basin, to buy the more expensive imported natural gas and sell power to consumers willing to buy at a higher rate. Power producers were not able to use imported gas earlier as there were no buyers for the costlier power, but they are hopeful of finding customers owing to the power supply shortage in the state.
Gas-based power plants in the state with a
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