CMS Energy, the US energy company, is trying to offload its stake in the 235-mw power project of the GVK Group at Jegurupadu, paving the way for its exit from the venture. CMS has put its entire equity stake amounting to 23.75 per cent on the block, a year after the company hiked its stake by 5 per cent.
The gas-based combined cycle power plant at Jegurupadu
The GVK Group, the joint venture partner, holds nearly 40 per cent stake in the power project while International Finance Corporation holds 10 per cent and Asia Infrastructure Fund holds 25 per cent. The project has an equity base of Rs 212 crore with a 70:30 debt-equity ratio. The gas-based project had incurred a cost overrun of Rs 100 crore due to depreciation of the rupee against dollar. The move to offload equity in the project comes in the wake of CMS's decision to move out of the country. The energy major is pulling out of Asia and other developing markets in favour of the US market. CMS had earlier threatened to quit the Ennore power project near Chennai.
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