Last checked at 17 May 2010 07:38
17th May 2010
KSK Power Ventur plc
("KSK" or "the Company")
Wardha Warora Power Plant - Commencement of Power Generation from Unit I of 540 MW Project
KSK Power Ventur plc (KSK.L), the power project company listed on the Main Market of the London Stock Exchange, with interests in multiple power plants across India, is pleased to announce that its subsidiary, 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 Bombay Stock Exchange Limited ("BSE"), has today announced the successful commencement of power generation from unit I of the 540 MW Wardha Warora Power Plant. The full text of the announcement issued by KSKEV to the NSE and the BSE is set out below:
KSK Energy Ventures Limited ("KSKEV") announces the commencement of power generation from the first 135 MW unit (out of the four such units of 135 MW each) of the540 MW coal fired project in Maharashtra. The project is undertaken through a Special Purpose Vehicle, Wardha Power Company Limited ("WPCL") and has a coal linkage from Western Coalfields Limited. WPCL has commenced the testing of the power plant parameters, post synchronization with the Grid and based on the coal procured from Western Coalfields Limited. With this capacity addition, the aggregate installed generation capacity of KSK has increased from 279 MW (at March 2010) to 414 MW
Entire power generated from the first two units (I & II) will be supplied to Maharashtra State Electricity Distribution Company Limited ("MSEDCL") under a short term PPA. WPCL has recently received a Letter of Intent from a large distribution licensee in Maharashtra for firm procurement of power in excess of 290 MW for the period from April 2011 to March 2014, at an attractive price. WPCL has already contracted power supplies on long term basis, from the balance available capacities from the other units (III and IV), expected to go on stream in 2010.
Commenting on the developments, Mr. T.L.Sankar, Non Executive Chairman of KSK said:
"While the company has faced challenges in execution due to change of regulations and other factors, the commencement of power generation at Wardha is the beginning of a new chapter in the company's growth and demonstrates the operating team's capability to scale up and build large sized power projects (500+ MW) in India with all the associated support infrastructure of power evacuation, coal transportation and water intake systems.
"It is anticipated that this experience and expertise gained would be extremely helpful to the company in executing the current largest project under construction viz. 3600 MW power project at Chhattisgarh and other large power projects being planned."
For further information please contact:
KSK Power Ventur plc +91 40 2355 9922
Mr. S. Kishore, Executive Director
Mr. K. A. Sastry, Executive Director
Arden Partners plc +44 (0)20 7614 5900
Richard Day / Adrian Trimmings
Financial Dynamics +44(0)20 7269 7157
Jonathan Brill / Billy Clegg / Ed Westropp