GMR Infra eyes Rs 3k cr power transmission biz
GMR Infrastructure plans to grow its power transmission business to handle projects worth about Rs 3,000 crore over the next three years, from two projects worth Rs 400 crore currently. The Bangalore-based company with interests in airports, power plants and highways entered the power transmission business in October 2010 by winning two projects in Rajasthan.
Currently, the company is setting up 400 km of transmission lines for the Rajasthan Rajya Vidyut Prasaran Nigam with two sub-stations at a cost of around Rs 400 crore, with a concession period of 25 years during which it will receive transmission charges. When completed, power would be sourced from distribution companies within and outside the state. A 2010 KPMG report pegged India's installed transmission capacity to around 13 per cent of the total installed generation capacity with the central and state utilities owning the total transmission lines of 2.7 million circuit kilometres.
Private participation in inter-state and state-level transmission lines have begun only in the past few years and the power ministry has projected an investment of Rs 21,000 crore from private investors and Rs 55,000 crore from Powergrid Corporation of India for projects in the central sector by the end of the current plan period in 2012.
The segment, however, contributes to a minuscule portion of GMR's energy business which clocked revenue of Rs 2,186 crore in 2010-11, about 38 per cent of GMR's consolidated revenues of Rs 5,773 crore in the fiscal. It currently operates three power plants with a total generation capacity of 808 MW and expects to commission three plants totalling 1,800 MW in the current fiscal.
Contact: GMR Energy Tel: +91 80 40432000 Web: www.gmrgroup.in/contact.html