Foreign investors seem to be warming up to India’s power sector again, after a long gap.
Hyderabad-based infrastructure firm Gayatri Projects on Tuesday signed an agreement with Singapore- based Sembcorp to set up a 1,320 mw thermal power plant in Krishnapatnam, Andhra Pradesh.
The cost of the supercritical power project will be Rs 6,869 crore, which will include an equity investment of Rs 1,718 crore by the two partners.
This is the first investment by a foreign firm in India’s power sector in over four years.
Gayatri managing director, Mr T. V. Sandeep Reddy, and Sembcorp executive vice-president Mr Tan Cheng Guan, signed the JV agreement in the presence of Andhra Pradesh Chief Minister, Mr K. Rosaiah, and the Union power minister, Mr Sushil Kumar Shinde.
“The first phase of the project will be completed in 40 months,” Mr Reddy said.
The next phase of the project involves setting up of a another 1,320 mw power capacity, he added.
The entire 2,640 mw capacity would be ready in five years time.
The project will help meet part of the growing power needs of the state, Mr Rosaiah said at the event.
“Sembcorp is the first foreign company to invest in the power sector in India in the last four-and-a-half years,” Mr Shinde adds.