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APGPCL proposed coal based power plant (660 MWs). Please refer News & Events for further details.


All Shareholders/ Prospective Shareholders.



Dear Sir,

Sub:Requirement of power in MWs in the proposed APGPCL’s 1 X 660 MWs Super Critical coal based power plant by the shareholders and prospective shareholders – Reg.

Back Ground of APGPCL:

APGPCL Gas Based Combined Cycle Power Plant was promoted by the erstwhile AndhraPradesh State Electricity Board (APSEB), under Public Private Joint Sector concept wherein few H.T. consumers from both Public and Private Sector along with erstwhile APSEB have constituted a collective a Private Public Partnership model (PPP) generating company,about 24 years back. The project was commissioned in the year 1990 and the total cost of the project was Rs.143crores that comes to Rs. 1.43 crores per MW which was considered as lowest among power plants established during that period. Based on State and Central Government approvals, Ministry of Petroleum & Natural Gas (MOP & NG) had allocated 0.4 MMSCMD of natural gas on firm basis and thus entered into an agreement on 21.11.1990 with GAIL for supplying the natural 

Further,MOP & NG have allocated 0.1 MMSCMD natural gas on fall back basis vide letter dated 14.3.1996. Further, with the success of 100 MW Plant, APGPCL had
established 172 MW power plant under the same concept of Public Private Partnership (PPP) mode and commissioned in the year 1997. The total cost of the project was Rs.414 Crores that comes to Rs.2.41 Crores per MW which was considered as lowest cost of the project among the other power plants that were established during that period. The MOP & NG had allocated 0.82 MMSCMD of natural gas on firm basis for Stage-II 172 MW power plant on 8.7.1999 and entered into an agreement with GAIL after establishing of 272 MW (Stage-I 100 MW and Stage-II 172 MW).  The shareholding pattern of APGPCL was as follows:

  APTRANSCO and Public Sector Industries                - 42%                  52%

  Wheeled percentage of power goes toAP.Transco     -10%

 in the form of units/KWH

  Private Sector Industries                                                 - 58%                  48%

  However, power goes to them after wheeled power    - 48%


Since then, these power plants have been operated ON NO PROFIT AND NO LOSS BASIS. The main object of the company is to assure the supply of power at low cost tariff (Average tariff about Rs.1.50 to Rs.2.00 per unit that rate extended to the shareholders during the period of 23 years since inception i.e.1990). This power plant got State and National Award for better performance and for achievement of highest PLF.

APGPCL  is shortly establishing 1 X 660 MWs super critical coal based power plants at nearby ports in Andhra Pradesh: - Inviting the investors/participating industries (existing or prospective) to participate in 1 X 660 MWs coal based power plants.

Why to invest in Andhra Pradesh Gas Power Corporation Limited (APGPCL) forth coming coal based power project.

       The existing 100 MWs (Stage I) and 172 MWs (Stage II) were set up within the scheduled time and thus increased the levels of confidence of the existing participating industries by extending always assured power and low cost of tariff than the erstwhile APSEB/Discoms.

       APGPCL since inception has been working under policy of no profit and no loss i.e. the cost of generation.

       APGPCL has been supplying the power generated by it at cheaper rates (less than half of Discoms tariff) since inception.

       APGPCL has been keeping its plant and machinery intact as if they were new by completing all the major overhauls as suggested by OEM (Original Equipment Manufacturer). Still 172 MWs having life more than 15 years and also Stage I has some more years to run as from time to time replacing the spare parts.

       Most of the participating industries have turned their balance sheets from loss to profit only by using APGPCL generated power at cheaper rates.

       Under the able, efficient and dynamic management of APGPCL, APGPCL has saved Crores of rupees by implementing cost reduction measures which were appreciated by the Board of Directors, Auditors and other outside experts.

Present Issue:

The Board of Directors of APGPCL recently took a decision to establish 1 X 660 MWs Super Critical coal based power plants at nearby ports in Andhra Pradesh.

It is also proposed to know the requirement of MWs of power either from the existing shareholders or from the prospective shareholders in the forth coming project. Please note

that the Detailed Project Report (DPR ) is under preparation  and will be ready shortly.The cost per unit under the proposed project is certainly less than the Discoms tariff.

In this scenario, we request you to give us requirement of power in MWs (1 MW is equivalent to 7,00,000 units) for the proposed new project.

It is also decided to collect Rs.10 lakhs per MW as token advance towards confirmation of requirement of power from the existing or prospective participating industries.

We request you to grab this golden opportunity and invest in the APGPCL forthcoming project. Please note that the forth coming coal based power project is only 660 MWs, please hurry up as there will be heavy rush from the existing or prospective participating industries as APGPCL is supplying the power at cheaper rates i.e. less than half of the Discoms  tariff.

Hence, you are requested to give your commitment in MWs along with the sum of Rs.10 Lakhs each per MW within 20 days from the receipt of this letter without any delay, so that APGPCL management will able to proceed to establish the 660 MWs power plant as the proposed power plant has to pass several mile stones within scheduled time.

Please note that on the amount of token advance,interest will not be paid. This amount is refundable if APGPCL has not considered any industry as shareholder. APGPCL has absolute discretion to take any industry as shareholder.

Thanking you,

Yours faithfully,
For A.P.Gas Power Corporation Ltd.,

CA.D.Venkateswara Reddy,
Managing Director.


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