KSK operating profits up

KSK Power Ventur's gross revenue in the six months to the end of September increased by 28% to $315.4m.

Gross profit increased by 66% to $87.51m while operating profits rose by 78% to $50.91m.

Pre-tax losses of $116.88m were down from $146.49m last time.

Chairman T. L. Sankar said: "The first half of the current year has witnessed a definitive increase in gross generation at the KSK Mahanadi power plant compared to the corresponding period in the previous year, while the other plants had minor variations. In aggregate it is anticipated that gross generation could exceed 10 TWh for full year operations. It is anticipated that gross generation will continue to increase further during 2017-18.

"With regard to the long term coal linkages at KSK Mahanadi, which in the short term have meant dependence on e-auction coal from Coal India and open market coal for balancing requirements, it is understood that the Ministry of Coal as well as the Ministry of Power of the Government of India are working towards a new policy of coal linkages for all power plants in India. KSK Mahanadi is currently meeting its entire coal requirements through e-auction and market coal.

"However, under the new policy under formulation, in addition to new linkage formats for future power generation plants, coal linkage requirements of all existing Independent Power Producers (IPPs), with PPA commitments to DISCOMS already made, is expected to also be addressed. This could ensure the power plant's long term coal requirements on a sustainable basis are addressed.

"The Company is pleased to note that, not only has the additional debt been sanctioned by the Consortium of Project Lenders for KSK Mahanadi but also the interim disbursement has since commenced, enabling progress towards completion of the next 1,200 MW

"As regards to discussions with a number of potential strategic and financial investors for collaboration / equity participation in the KSK Mahanadi project, progress has been made and the Company is confident that, with the support of its lenders, progress on this aspect will also be achieved.

"Our performance during the period would not have been possible without the continued support of our shareholders, who have enabled us to pursue business opportunities despite challenging market conditions."