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GVK Power buys 9.5% stake in Gautami from Nagarjuna Construction

30 Mar 2010 Evaluate

GVK Power & Infrastructure Ltd has acquired 9.50 per cent additional stake in GVK Gautami Power Ltd from the Hyderabad-based Nagarjuna Construction Company Ltd. It plans to add about 800 MW more capacity to the plant.

 

Following this acquisition of additional stake in GVK Gautami Power Ltd, which manages a 464 MW gas-based plant at Peddapuram near Kakinada, GVK has consolidated its holding further with its stake in the power project going up to 63.60 per cent.

 

The company is keenly pursuing expansion of the project by about 800 MW, which is subject to gas allocation. Once this is achieved, it will take up issues relating to financial closure. The company has concluded acquisition of 9.5 per cent stake equivalent to 6.25 crore shares from NCC. Of the balance, 20 per cent stake is held with IJM, Malaysia, and 17 per cent with Maytas Infra Ltd.

 

The GVK management commissioned the project by initially running with diverted gas from other projects and later from natural gas supplies from the Reliance Industries' KG basin gas produce. It has been running at full steam since the gas started flowing from the KG basin through pipeline grid.

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