GMR Infrastructure has sought Rs 480 crore for recovering fixed costs for its 388.5-megawatt (Mw) gas-based power plant from the Andhra Pradesh Central Power Distribution Company, sources said.
The power plant at Vemagiri in the state has been idling for lack of gas from Reliance Industries's KG-D6 block since the start of this financial year.
It's plant load factor (a measure of capacity use) has been zero for months now, leading to losses. Consequently, GMR Infra is seeking recovery of fixed costs such as capital costs and maintenance from the state distribution company (discom), which buys power from it.
While the discom could not be reached for comments, GMR said denied to comment on the development.
Many off-take contracts allow for recovery of fixed costs if the buyer fails to purchase power from the project. Reasons for not buying power can range from lack of demand to the finances of the discom. In such cases, the discom pays to ensure the power plant does not go into losses.
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