AP plans to take over GVK power plant

Vijayawada, Oct 11: The Andhra Pradesh government has decided to take over 217 MW GVK power plant at Jegurupadu in East Godavari district. The decision was taken at the Cabinet meeting held at Vijayawada yesterday. The government will soon issue a buyout notice to GVK to take over the power plant. The government's move is based on an option provided in the Power Purchase Agreement (PPA) between AP Transco and GVK. The project is India's first private power plant and it started operations in 1997. If the government extends PPA with GVK, Telangana would gets is share of 100 MW at a much lesser cost. As per the provisions of AP State Reorganisation Act -2014, both the Telugu states will have rights over the power projects irrespective of the geographical location, if the power plants are operated as per old PPAs. Similarly the government decided to rename Rajahmundry as Rajamahendravaram.