Hyderabad, May 25 (IANS) Singapore-based energy and water company Sembcorp Industries Tuesday signed an agreement with an Indian firm for a joint venture to set up a 1,320 MW power plant in Andhra Pradesh.
Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp, will hold 49 percent in the venture, Thermal Powertech Corporation India Limited. The remaining 51 percent will be held by Gayatri Energy Ventures Private Limited, a subsidiary of Gayatri Projects Limited.
Sembcorp will invest Rs.1,100 crore in the Rs.6,869 crore supercritical technology-based plant at Krishnapatnam in coastal Nellore district.
The two companies signed the agreement in the presence of Power Minister Sushil Kumar Shinde and Andhra Pradesh Chief Minister K. Rosaiah.
Gayatri Projects Managing Director T.V. Sandeep Reddy said the first phase of 1,320 MW would be completed in 40 months while the work for the second phase of another 1,320 MW would begin in one year.
He said the financial closure for the project was expected to be completed by mid-June. While Rs.5,151 crore of the project cost would be raised through debts, the remaining Rs.1718 crore will be in the form of equity.
Reddy said no decision had been taken to have Sembcorp as the partner for the second phase. The boards of the two companies will take a decision. The entire project of 2,640 MW is expected to be completed in five years.