Last checked at 30 Apr 2009 07:00
OPG POWER VENTURES PLC
"OPG or the "Company"
OPG announces that OPG Power Gujarat Private Limited has entered into an Order Agreement with Bharat Heavy Electricals Limited ("BHEL") for the supply of the boiler, turbine and generator at its development in Kutch, Gujarat. The initial deposit has been paid.
The power plant development at Kutch will now be for a 2 x 150 MW plant (300MW total, previously 270MW), with two individual units of 150 MW capacity each. As announced in November 2008, the debt finance for the project has been raised and all substantive conditions precedent have now been completed. BHEL will supply the above-mentioned equipment and also provide the Engineering and Construction Services ("ECS") under a separate agreement.
TATA Consulting Engineers have been appointed to provide consulting engineering services during the project implementation. The Directors consider Tata to have an excellent and proven track record in this field.
The award by OPG of these orders for equipment, engineering & construction services and for consulting engineering services, means that, together with existing capacity and current development projects, the Company has taken the key steps necessary for the creation of a total capacity of 407 MW of power generation to be in operation by 2011/12.
Update on 77MW
Good progress continues to be achieved in the construction of the 77MW coal fired power station near Chennai. The boiler is now installed and the sub-assemblies for the various items of equipment are progressing well and to timetable. A key component, the generator rotor shaft, has failed to pass its non-destructive test at the BHEL forging plant. Replacements, including a spare, are under manufacture and the directors expect confirmation of a delivery date in the coming weeks. Subject to this component arriving and performing as planned, the directors expect a short delay to the previously announced timetable for commissioning.
The Company expects to announce towards the end of June its preliminary results for the year ended 31st March 2009.
Arvind Gupta, C.E.O said
"We are pleased to announce the full initiation of the Gujarat project and that, in the process of closing the technical aspects of this project, we were able to increase its scale. The power market in India continues to evolve with supply/demand imbalances causing favourable pricing conditions. The Company continues to make progress towards fulfilling its strategy of becoming a leading operator of power plants in India".
Please note that the Company's website is now www.opgpower.com/
| OPG Power Ventures Plc | |
| Arvind Gupta (Managing Director) | +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 / Nick Peters/ Andrew Dunn |
Note 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 Company has substantial capacity expansion plans.
OPG has two plants in profitable operation, a further two under construction and two more in the pipeline for medium term development. Taking advantage of the new regulatory environment, OPG's pipeline includes a further five power plants with the capacity to generate 5.5 GWs. Planning for these plants is at an early stage. OPG has secured £125m financing for the Company's 2x150 MW power stations at Kutch, Gujarat, which will be commissioned in 2011.