Mahanadi Power Plant - 600 MW Unit Synchronisation
20 May 2013
KSK Power Ventur plc
("KSKPV" or the ¡°Company")
KSK Mahanadi Power Plant - First 600 MW Unit Synchronisation
KSK Power Ventur plc (KSK.L), the power project company listed on the London Stock Exchange, with interests in multiple power plants and businesses across India, is pleased to announce the successful synchronisation of its first 600 MW unit of the KSK Mahanadi Power plant with the National Grid on 18 May 2013 and commencement of power generation. This large fuel integrated power plant has many firsts to its account and the first 600 MW unit will now go through the necessary stabilisation procedures before commencement of power supplies to contracted utilities.
KSK Mahanadi is a 3600 MW (6 units of 600 MW) single location, greenfield private power plant and the largest power generation initiative of the KSK Group. With capital investment commitment over US$ 3.6 billion, this coal fired power plant once completed will help address the power requirements of multiple states across India, namely Gujarat, Chhattisgarh, Goa, Andhra Pradesh and others with power generation based on long term coal supply arrangements with Gujarat Mineral Development Corporation (¡°GMDC¡±) and Goa Industrial Development Corporation from the committed Morga-II and Gare Pelma-III coal blocks respectively, besides enjoying the benefit of tapering linkage arrangements with the Coal India.
In pursuance of the recent decisions by the Group of Ministers to address fuel issues surrounding highly progressed power projects across India including KSK Mahanadi, the Ministry of Environment and Forest, Government of India (MOEF) has accorded Forest Clearance to GMDC in respect of the Morga-II Coal block, thereby clearing the way for prospecting of the coal block by GMDC. KSKPVanticipates that in the immediate term fuel supplies of the power plant will be met through tapering linkage granted to the Company in November 2008.
Commenting on the developments, T.L.Sankar, Chairman of KSK said:
"These developments demonstrate real progress, with such a large generation initiative having been successfully handled by the operating team with all the challenges on ground and with the current economic environment.
While the last few years have been difficult times for the power sector in India, the Group has continued to make investment commitments and has made good progress in the KSK Mahanadi project. The commencement of supplies helps ensure the initially planned power generation from KSK Mahanadi moves forward and the Group focus shall continue to be on addressing various supply chain and other challenges on the ground, as well as actively collaborating and supporting the contracted government entities for the delivery of early coal supplies from the long term sources.
This would not have been possible without the support of all the equity investors, various banks and institutions which provided the necessary investment and project finance debt as well as the central, state and local governments which provided the requisite support. We look forward to the planned commissioning of the balance of the other five 600 MW units, creating a power project setting benchmarks in efficiencies for power genration and supply..
We look forward to the years ahead as KSK emerges as one of the more stable players in the Indian power generation landscape."
For further information, please contact:
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KSK Power Ventur plc
Mr. S. Kishore, Executive Director Mr. K. A. Sastry, Executive Director
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+91 40 2355 9922 |
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Arden Partners plc
Richard Day / Adrian Trimmings
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+44 (0)20 7614 5900 |
This information is provided by RNS
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