Aquisition of land and expans

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 £9.6 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 £2.2 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)	[phone]
V. Narayan Swami (Finance Director)	[phone]
Martin Gatto (Senior Non Executive Director)	[phone]
Cenkos Securities (Nominated Adviser & Broker)	[phone]
Stephen Keys/ Camilla Hume
Tavistock Communications	[phone]
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

 

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