GVK may sell gas power assets to Andhra Pradesh to settle Rs 18 billion debt

The debt-ridden GVK Group is reportedly in talks to sell two of its gas-based power projects with a combined installed capacity of 684 MW to Andhra Pradesh power utilities in order to settle debt of around Rs 18 billion through a one-time settlement. The projects are the 464 MW GVK Gautami power plant and the 220 MW Phase II of the Jegurupadu power plant. The Andhra Pradesh government has in principle agreed to buy out these plants. The two stranded gas power projects have been adding to the group’s losses for the past few years as natural gas has not been available to run the plants. Most of the loans taken for the projects turned non-performing assets after the company failed to repay the debt.