Chief Minister of Andhra Pradesh, Dr. Y S Rajasekhara Reddy, has asked the officials of APGENCO to consider the possibility of creating a SPV to facilitate the setting up of two mega power projects to meet the increasing demand for power in the state.

The project includes the 21,000 MW gas based combined cycle power plant near Hyderabad district of Andhra Pradesh and the 2x800 MW super critical plant at Krishnapatnam near Nellore district of Tamil Nadu. The multi-stage Krishnapatnam project can potentially be increased to 4,000 MW.

The project is expected to go on stream by June 2008. This assumes importance given the projections of major gas find in the Krishna Godavari basin by ONGC, Reliance and among others.

The Chief Minister has asked APGENCO to select the SPV partner for project development through floating of EoIs. The SPV will ensure that the project development activities will get completed within six to nine months against normal time of two to three years.