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GMR halts work on Madhya Pradesh power project due to coal shortage

Steel News - Published on Mon, 26 Mar 2012

GMR Infrastructure has put the development of its INR 7,000 crore power project at Shahdol, Madhya Pradesh due to coal shortages.

The company acquired this 1,370 MW project from SKJ Powergen in 2009. It was to be commissioned in 2014.

Mr A Subba Rao CFO of GMR said that “Private power producers are so much bruised, they do not dare to set up anything new. No one can put up any capacity in this kind of situation.”

The Union government recently gave a coal supply assurance to power producers and directed state owned Coal India to go ahead and sign fuel supply agreement. Mr Rao said that he’ll wait for implementation of these assurances.

Yet another 1,370 MW coal based power project GMR is developing in Raipur, Chhattisgarh, is yet to get an FSA. The company said that this project is on the priority list, as the government said fuel would certainly be given for projects commissioned before 2015-16. The project is expected to be commissioned by 2013-14.

Source - Business Standard

(www.steelguru.com)

Posted By : admin on Mon, 26 Mar 2012
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