Last checked at 2 Dec 2013 07:05
2 Dec 2013
KSK Power Ventur plc
("KSKPV" or the "Company")
Business Update
KSK Power Ventur plc ("KSKPV" or "the Company"), the power project company listed on the London Stock Exchange, with interests in multiple power plants and businesses across India hereby notifies the business update made by KSK Energy Ventures Limited ("KSKEV"), the equity shares of which are listed and traded on the National Stock Exchange of India Limited ("NSE") and the BSE Limited ("BSE"). The Update has been reproduced below for immediate reference:
"KSK Energy Ventures Limited is a BSE and NSE listed power project Development Company with interests in power generation business. The parent company of KSK Energy Ventures Limited is KSK Power Ventur plc, which is listed on the London Stock Exchange.
The 6X600 MW Power project is the largest power generation initiative of the KSK Group and the Company has been making progress in extremely trying times.
A brief update on the project on-site progress is as provided below:
· First 600 MW Unit is fully functional with all associated ancillary infrastructure set up by various Group companies commissioned and operational;
· The entire 60 km pipeline laying work for the water intake system for the power plant has been completed and currently used for water transport; and
· The rail connectivity of the power plant to the Indian Rail network is completed with movement of rakes into the plant commenced.
· Power supplies are being made in accordance with the Grid code and Power Purchase Agreements ("PPA"). Revenue recognition is expected to commence in the later part of the current quarter.
· It is anticipated that boiler light up for the second unit of 600 MW, on a test basis, will be achieved within the next 45 to 60 days and the turbine generator box up is also anticipated to be completed around the same time. Flue duct fabrication works and insertion completion in the second chimney for the second 600 MW unit is in progress.
Fuel Supplies:
With capital investment commitment of over US$ 3.6 billion, this coal fired power plant once completed will help address the power requirements of multiple states across India, namely Gujarat, Chhattisgarh, Goa, Andhra Pradesh and other states with power generation based on long term coal supply arrangements with Gujarat Mineral Development Corporation ("GMDC") and Goa Industrial Development Corporation from the committed Morga-II and Gare Pelma-III coal blocks respectively, with tapering linkage arrangements with Coal India to address immediate needs.
KSK has been anticipating the immediate term fuel supplies of the power plant being met through tapering linkage granted to the Company in November 2008 and the Company has been pursuing the same with the Government of India for a considerable time. Further updates shall be provided as we obtain necessary confirmations and execution with respect to the same.
Power Sales:
As regards Power sales, KSK Mahanadi is pleased to confirm that an additional long term PPA for 500 MW of Net Capacity, under a competitive Bidding process, has now been concluded with Tamil Nadu Generation and Distribution Corporation Limited ("TANGEDCO") at a levelised tariff of Rs 4.91/kwh, with potential for tariff escalations on account of certain input costs.
The Company has participated in other competitive bids under Case-I mechanism by state utilities and is waiting for further tie-up of substantial power plant capacities under long term PPAs."
For further information, please contact:
KSK Power Ventur plc
Mr. S. Kishore, Executive Director
Mr. K. A. Sastry, Executive Director +91 40 2355 9922
Arden Partners plc
Richard Day 44 (0)20 7614 5900