GMR's Vemagiri Power Plant gears up for January 08 operations

GMR Infrastructure Ltd has announced that the GMR Group's Vemagiri power plant situated at Rajahmundry in Andhra Pradesh will start generating power from January 2008 onwards, initially for a period of four months. This follows the State government's assurance to provide 1.12 - 1.15 million cu.m. of natural gas per day from GAIL India Ltd.

GMR's 388.5 MW Vemagiri plant, which was commissioned in November 2006, operates on the combined cycle technology, and uses natural gas as fuel. It is one of the most cost-effective Independent Power Producers (IPPs) in the country. Under the Power Purchase Agreement, Vemagiri Power Generation Ltd has to supply power to APTRANSCO for a period of 23 years.

Mr. Raajkkumar, CEO of the GMR's Energy Sector, confirmed that, "The Andhra Pradesh government has conveyed its willingness to supply gas to our Vemagiri project from January, 2008. The plant has not been operational for about a year now, due to the non-availability of fuel. This is a very positive development and a win-win situation for both, the people of Andhra Pradesh as well as our Company."

The Vemagiri power plant is the largest amongst the three operational plants of GMR Energy.

The other power projects of the Company are:

Operational

• 20O MW Low Sulphur Heavy Stock (LSHS) - fired power plant in Chennai which commenced commercial operations in 1999

• 220 MW Naphtha - fired power plant in Mangalore which commenced commercial operations in 2001

Under Development:

• 140 MW hydroelectric power plant on the river Alaknanda in Uttaranchal

• 1050 MW Coal based power plant in Angul / Dhenkanal districts at Orissa

• 160 MW Hydroelectric power project in Tallong district of Arunachal Pradesh

• 1000 MW coal based Thermal power project in Chattisgarh

• 180 MW project on River Ravi in Chamba District of Himachal Pradesh.