Last checked at 29 Oct 2010 07:00
OPG Power Ventures PLC
("OPG" or the "Group")
Operations Update
OPG Power Ventures PLC, the developer and operator of Group Captive and Merchant Power plants in India, is pleased to provide the following update on its operations.
Kutch, Gujarat
Activity at the site of the Group's 2 x 150 MW Kutch development has commenced. Civil works are underway and Tata Power Company Limited has advised the Group that it has scheduled a programme of work for completion of the plants in the first half of 2013.
Chennai, Tamil Nadu
Having completed its stabilization period, the Group's 77 MW plant at Gummipoondi, near Chennai, has been operating for the past several weeks at 85 per cent. plus capacity. The Directors therefore expect the plant to make an appreciable contribution to the Group's results in the current and ensuing years.
The Group is also pleased to announce that work has commenced on the construction of its second 77 MW plant at the same site. All major equipment has been ordered and environmental and other clearances have been received and the Directors expect this plant to be completed CY 2012.
The Group's 10 MW waste heat plant continues to operate satisfactorily and the Directors remain pleased with its contribution to the Group.
Mayavaram, Tamil Nadu
The Group is pleased to report that gas pressure at its 19.4 MW plant has reverted to former levels. This has enabled the plant to operate at about 90 per cent capacity since the beginning of August and the Directors expect this to be the case for the foreseeable future.
Commenting on the recent progress made by OPG, Arvind Gupta, Chief Executive Officer stated: "Whilst pleased with the progress made by the Group to date, we are now looking beyond the capacity target of 377 MW, indicated at the time of our AIM listing, to a possible 1,250 MW to be realized by the year 2015. The strong and improving trading outlook in the Indian power sector has encouraged us to raise our sights. Speedy and effective implementation of our development plans will remain key to OPG and we believe that OPG's solution to India's power requirements will ensure that power is provided to our customers at competitive rates whilst, at the same time, also providing excellent returns to our shareholders".
For further information, please visit www.opgpower.com or contact:
OPG Power Ventures Plc | |
Arvind Gupta (Managing Director) | +44 (0) 7814 830 893 +91 (0) 98400 96299 +91 (0) 44 429 11 222
|
V. Narayan Swami (Finance Director) | +91 (0) 99400 17927 +91 (0) 44 42911214
|
Martin Gatto (Senior Non Executive Director) | +44 (0) 7778 749 223 |
Cenkos Securities (Nominated Adviser & Broker) | +44 (0) 20 7397 8900 |
Stephen Keys/ Camilla Hume | |
Tavistock Communications | +44 (0) 20 7920 3150 |
Simon Hudson / James Midmer |
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 400MW in operation by 2012/13.