APGENCO signs MoU with IL

Hyderabad, Mar 8: A Memorandum of Understanding (MoU) has been signed between APGENCO and Infrastructure Leasing and Financial Limited (IL&FS) to set up two Mega power projects in Andhra Pradesh.

The MoU to set up 2100 MW gas-based Combined Cycle Power Project between Hyderabad and Karimnagar and 1600 MW (2x800 mw) Supercritical Power Project at Krishnapatnam, Nellore district (to be ultimately expanded to 4000 mw) on a fast track mode was signed in the presence of Chief Minister Y S Rajasekhara Reddy in his chambers in the Secretariat.

APGENCO has selected IL&FS, having varied experience in developing the infrastructure projects, as a partner for project development activities. A Special Purpose Vehicle (SPV) AP Power Development Company Ltd was formed for developing the two mega power projects in the state, an official release said here today.

The project development activities would be completed within a period of six to seven months and it was expected that zero date for the gas-based project would start by July,2006. The first module of the project would be commissioned by July, 2008. Similarly, the project development activities for Krishnapatnam would be completed by November, 2006, and the first module would get commissioned in a period of 36 months thereafter.

The Chief Minister directed the officials to make arrangements to commission the project ahead of the schedule in view of the growing power demand in the state. The SPV would underake development of projects which include site selection, land acquisition and getting all the statutory clearance.

The release said the combined experience of APGENCO and IL&FS would enable the SPV to complete the projects as per schedule. The The two projects once commissioned would generate 3700 MW to AP Grid and help in overcoming the power shortage of the state. After development of the two projects, the implementation would be taken up by APGENCO and other government agencies.

In this connection, the Chief Minister also reviewed the progress of the eight projects-- Rayalaseema stage II (420MW- August/November, 2006) Jurala Hydel Project(234 MW-March 2007 onwards), Vijayawada Thermal Project Stage IV (500 MW-June 2008), Bhoopalapally Thermal Project (500 MW-November, 2008), Nagarjunasagar tail pond project(50 MW-July 2008) Kothagudem Thermal Project Stage vi(500 MW-October 2010).

The Chief Minister stressed that no effort should be spared in completing the Rayalaseema Thermal and Jurala Hydro project well before the deadline set earlier. The two projects, put together, would add 660 MW during the 2006-07. Besides this capacity addition, another 1,000 MW of power generation was expected in the private gas-based projects subject to availability of gas for them.

Minister for Energy and Information Md Ali Shabbir, Special Chief Secretary Energy Mr Goel, Principal Secretary Irrigation Mr C V S K Sarma, Principal Secretary Investments and Infrastructure Mr K V Rao, MD HMWSSB Mr Jawahar Reddy, CEO IL&FS Mr D K Mittal, MD APGENCO Mr Ajay Jain and other senior offficials attended the meeting.

UNI