Asian Gateways bags RM5.5b India power plant job
Saturday, 28 July 2007
In what is seen as the first fully-owned Malaysian company to penetrate the tough Indian power sector, Asian Gateways Construction Sdn Bhd (AGC) has secured a 30-year contract to supply power.
The project is expected to generate about RM1.028 billion in annual profit for the company.
After two years of intense negotiations, AGC signed the power purchase agreement (PPA) with PTC India Ltd, paving the way to build and operate a RM5.48 billion thermal coal-fired power plant in Krishnpatnam in Andra Pradesh.
"It is 100 per cent Malaysian project. This project is classified as a mega project by the Indian government and AGC will enjoy tax-free status," a jubilant AGC executive chairman/managing dircector, Datuk Seri Ho Seng Kung, told Bernama after clinching the deal here yesterday.
"The duration of the project is 25 years with an extension of another five years and the total capacity of the plant is 1,600 megawatts (MW).
"The construction of the first phase will start once the environmental impact assessment report is ready and the project will kick off in 12 months or even earlier. Under the first phase we will supply 1050 MW," he said.
Robust India is hungry for power, where about 10,000 MW would be needed over the next five years to fuel its sizzling economy, steaming at about nine per cent annually.
Ho said under the PPA, PTC, India's power-trading arm, agreed to buy all the power generated by AGC at US$0.05 per kWh.
PTC would tap the power from AGC plant and feed into India's national grid, which would be distributed nationwide, where demand from the booming industrial and commercial sectors are spiralling daily.
Ho said 1,000 acres of land in Krishnapatnam town, about 150 km north of Chennai, had been earmarked for the coal-fired power plant. The first phase is expected to be completed in 48 months, while the second phase is targeted to begin after the commissioning of the first phase.
Yearly, about two million metric tonnes of coal would be needed to power the plant and AGC's plans to import the fuel from its own coal mines in Sumatra, in Indonesia.
.......................................
http://www.btimes.com
The project is expected to generate about RM1.028 billion in annual profit for the company.
After two years of intense negotiations, AGC signed the power purchase agreement (PPA) with PTC India Ltd, paving the way to build and operate a RM5.48 billion thermal coal-fired power plant in Krishnpatnam in Andra Pradesh.
"It is 100 per cent Malaysian project. This project is classified as a mega project by the Indian government and AGC will enjoy tax-free status," a jubilant AGC executive chairman/managing dircector, Datuk Seri Ho Seng Kung, told Bernama after clinching the deal here yesterday.
"The duration of the project is 25 years with an extension of another five years and the total capacity of the plant is 1,600 megawatts (MW).
"The construction of the first phase will start once the environmental impact assessment report is ready and the project will kick off in 12 months or even earlier. Under the first phase we will supply 1050 MW," he said.
Robust India is hungry for power, where about 10,000 MW would be needed over the next five years to fuel its sizzling economy, steaming at about nine per cent annually.
Ho said under the PPA, PTC, India's power-trading arm, agreed to buy all the power generated by AGC at US$0.05 per kWh.
PTC would tap the power from AGC plant and feed into India's national grid, which would be distributed nationwide, where demand from the booming industrial and commercial sectors are spiralling daily.
Ho said 1,000 acres of land in Krishnapatnam town, about 150 km north of Chennai, had been earmarked for the coal-fired power plant. The first phase is expected to be completed in 48 months, while the second phase is targeted to begin after the commissioning of the first phase.
Yearly, about two million metric tonnes of coal would be needed to power the plant and AGC's plans to import the fuel from its own coal mines in Sumatra, in Indonesia.
.......................................
http://www.btimes.com