GMR Rajahmundry Energy starts operation of 768 MW power plant

GMR Infrastructure today announced the successful commencement of commercial operations of GMR Rajahmundry Energy (GREL) of its 2X384 MW gas-based combined cycle power plant in Rajahmundry, Andhra Pradesh.

GREL is a subsidiary of GMR Energy.

The commercial operation of the power plant commenced with the beginning of gas supply under e-bid RLNG Scheme (Scheme for Utilization of Stranded Gas based power plants), which was launched by Government of India in March 2015.

With the beginning of e-bid RLNG Scheme, the 768 MW power plant can now operate at 50 per cent plant load factor (PLF), thereby generating 384 MW and supplying power to AP discoms continuously.

The plant will operate with clean fuel thus making the power generation environment friendly. GREL is a combined cycle power plant with natural gas and generates power using GE's advanced class technology of gas turbines (GE Frame 9 FA).

With the current scheduling, the plant is expected to run for at least a month.

Current operations will continue up to March 2016, depending on gas availability. Thereafter the centre  will call for a fresh round of bidding in March 2016.

The gas-based plant was awarded allocation of gas last month along with GMR Vemagiri Power Generation Limited (GVPGL), which has already got operational recently. Both the plants are located adjacent to each other.

Power generated from this plant would be supplied to Andhra Pradesh power distribution companies.

Commenting on the development, a GREL spokesperson said, ''We are happy to receive the gas under e-bid RLNG Scheme from the government of India and announce commencement of commercial operation of GMR Rajahmundry Energy Ltd, which will help in rationalising the power tariff and improve the power supply scenario of the state. The revenue generated through this will facilitate the GMR Energy Limited to cover O&M expenses and service the interest cost.''

As per the scheme, the government will subsidise the power distribution companies to the extent of Rs1.44 per unit from the Power Sector Development Fund.

GMR Vemagiri Power Generation Ltd and GMR Rajahmundry Energy Ltd - with a combined capacity of 1,156 MW will be supplied with imported natural gas through the government's reverse auction process of Scheme for Utilisation of Stranded Gas based power plants.

GMR Energy has already secured coal security for all its coal-based assets worth 3,000 MW.