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GVK Power and Infra may acquire two under-construction thermal power plants in Andhra Pradesh

New Delhi: India's infrastructure major GVK Power and Infrastructure Ltd is looking to acquire two under-construction thermal power plants in Andhra Pradesh as the private developers, implementing these projects, have shown interest to exit the projects due to financial constraints, the Press Trust of India reported, citing sources.

"The firm (GVK Power) is looking at acquiring two thermal power projects in Andhra Pradesh. It is evaluating that option," the sources told the news agency, without disclosing further details, saying the talks are in the initial stages.

GVK, which is eying to become a 5,000-megawatt (MW) company over the next five years, is currently developing four projects, including hydro and thermal projects.

The under construction projects include the 330-MW Alaknanda hydro project in Uttarakhand, of which 8% construction has been completed and it is likely to be operational in 2013.

Earlier this month, media reports said that the firm is in talks with lenders to raise fresh debt of Rs 12 billion in the project. The infrastructure major will also invest Rs 3 billion more in equity on the project, whose cost has gone up by Rs 15 billion to Rs 43 billion from Rs 28 billion earlier, the reports said.

The infrastructure firm is also implementing a 850-MW hydro power project, which would be commissioned in the next five years. There is another 370-MW Goriganga hydro project in Pittorgarh, Uttarakhand, which would be operational by 2013 and 540-MW Goindwal Sahib thermal power project at Tarn Taran, in Punjab.

Presently, GVK operates through three power projects with a cumulative capacity of 900-MW in Andhra Pradesh.

Shares of GVK Power and Infrastructure closed at Rs 17.20, up 2.38%, on the Bombay Stock Exchange today.