Aquisition of land and expansion of plant (0711A)
January 25 2011 - 11:41AM
UK Regulatory
TIDMOPG
RNS Number : 0711A
OPG Power Ventures plc
25 January 2011
25 January 2011
OPG Power Ventures plc
("OPG", "the Company" or the "Group")
Acquisition of property for brownfield construction of 250 - 300
MW power station and expansion of existing OPG gas fired unit
OPG Power Ventures plc, the developer and operator of Group
Captive and Merchant power stations in India, is pleased to
announce the acquisition of a new brownfield site and the expansion
of one of the Company's existing units.
Acquisition of property for brownfield construction at Bellary,
Karnataka
The Company's cash bid of Rs 64.90 crores (approximately GBP9.6
Million) for a 120 acre property at Bellary, Karnataka has been
accepted. The property, which is located close to railway lines and
accessible by road from the state highway, includes a 12 MW
partially constructed thermal power plant and associated
infrastructure. The Company currently expects to commission the 12
MW plant by Q3, 2012. In addition, the directors believe that with
the necessary land and certain infrastructure already in place, a
250-300 MW power station can be built on this site. The Company has
commenced drawing up plans for such a development.
Expansion to 25.4 MW of the gas fired power station in
Mayavaram, Tamil Nadu
As a result of increased gas availability from its present
suppliers, the Company is increasing production at this site by 6
MW to 25.4 MW. The additional gas supplies will utilize existing
supply infrastructure and additional gas engines capable of
handling 6 MW additional production have been ordered and are due
for delivery in the coming months. Commissioning of the additional
capacity is expected to be achieved by June 2011 at a total cost of
GBP2.2 Million which is to be financed from the plant's cashflows
and approved debt.
Commenting on the development, Arvind Gupta, Chief Executive
said,The acquisition of property at Bellary offers us the scope to
build a sizeable thermal power plant as our first initiative in
Karnataka which, similar to our other locations, is highly
industrialised and growing and therefore presents an excellent
opportunity for the Group to pursue its mission to be the supplier
of choice of uninterrupted power to Indian industry."
For further information, please visit www.opgpower.com or
contact:
OPG Power Ventures plc
Arvind Gupta (Managing Director) +91 (0) 44 429
11 222
V. Narayan Swami (Finance Director) +91 (0) 44 429
11214
Martin Gatto (Senior Non Executive +44 (0) 7778 749
Director) 223
Cenkos Securities (Nominated Adviser +44 (0) 20 7397
& Broker) 8900
Stephen Keys/ Camilla Hume
Tavistock Communications +44 (0) 20 7920
3150
Simon Hudson / Sonya Williams
Notes to editors:
OPG Power Ventures Plc is a profitable developer and operator of
power plants in India. India's rapid economic growth has been
constrained by power shortages and the government has deregulated
the industry with a new open market framework allowing developers
into the market. The Group Captive Power Producers Scheme,
introduced in 2005, allows companies such as OPG to build new power
plants to supply electricity directly to groups of customers at
mutually agreed prices and the Group has substantial capacity
expansion plans.
OPG has 3 plants, generating 107 MW, in profitable operation, a
further two under construction and one more in the pipeline for
medium term development. Taking advantage of the new regulatory
environment, OPG intends to have over 600MW in operation by
2013
This information is provided by RNS
The company news service from the London Stock Exchange
END
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