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Fuel crunch likely to hit GVK's bottomline

29 Mar 2011 Evaluate

Bottom-line of GVK Power and Infrastructure Ltd, may be adversely impacted in the fourth quarter (January-March) of the present financial year due to the deficit in the supply of gas from the D6 block of Reliance Industries Ltd. Recently, gas supply from RIL’s Krishna Godavari D6 block was down by 8-10 per cent, affecting power generation of four Andhra Pradesh power units. These units are GVK’s Jegurupadu and Gautami plants, GMR’s Vemagiri plant and Lanco Infratech’s Kondapalli power plant. Due to deficit of gas supply to power projects in Andhra Pradesh (AP), the government has now decided to supply RLNG for power generation.


Regarding the acquisition of overseas coal assets, the company plans to close some deal by the end of this year. Presently, GVK is in the race to acquire Hancock coal asset along with the other bidder, JSW Energy in Australia. The infrastructure company, which has a focus on sectors like power, airport, road, urban infrastructure among others, is also in the process of bidding and selecting a construction contractor for a new terminal at the Bengaluru International Airport. The company should start land monetization at the Mumbai airport from the middle of this year after receiving the necessary approvals.

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