GPPC Pipavav Power Co (GPPC) a special purpose vehicle set up by Gujarat State Petroleum company is planning to invest Rs.25,450 million to set up 1053 gas based power project in phases. In the first phase, it will set up a 351 MW gas fired power unit in Pipavav which is likely to be completed in December 2010 and the second phase by March 2011. It has tied up 80% of funds from Rural Electrification Corp. It has appointed BHEL as EPC contractor through international competitive bidding route.
The first phase of the project envisages the construction of two 351 MW gas based combined cycle power plants. Construction for the first phase has begun and is being undertaken by Bharat Heavy Electricals Limited who was appointed through a tender process. The land on which the plant will be located is currently owned by Gujarat Power Corporation Limited who is in the process of transferring it to GPPC.
Further, the Government of Gujarat and board of directors of GPPC have approved the sale of a 49.0% equity interest in GPPC to SWAN Energy Limited (“SWAN Energy”).
GPPC has entered into a power purchase agreement with GUVNL which is effective for 20 years from the commissioning of the first phase of the plant. A gas supply agreement with us and a gas transmission agreement with GSPL have also been entered into for the supply and delivery of gas, during the term of the project.
The first 351MW unit is commissioned in December 2010, and the second unit by March 2011. The second phase of the project envisages expanding the capacity of the power plant by another 351MW. The project cost is estimated at INR25450 million ($559 million) that would be funded through 20% of equity and 80% of debt. However, the debt requirement to the extent of INR19350 million ($425 million) has been tied-up by Rural Electrification (REC). GPPC is a Special Purpose Vehicle (SPV) set up by GSPC (Gujarat State Petroleum Corporation) along with GPCL (Gujarat Power Corporation Limited), to implement a power project catering to energy requirements in Gujarat. GPPC has appointed Bharat Heavy Electricals Limited (BHEL) as the EPC contractor through international competitive bidding (ICB) route and the Notice to Proceed (NTP) was handed in March 2008.