GSPC Pipavav Power (GPPC), a special purpose vehicle set up by Gujarat State Petroleum Corporation (GSPC) along with Gujarat Power Corporation (GPCL), is planning to set up a 1,053MW gas-fired combined cycle power plant at Pipavav in the Indian state of Gujarat, The Economic Times reported.

The project cost is estimated at INR25.45bn, which is expected to be funded through 80% of debt and 20% of equity. According to Tapan Roy, managing director of GSPC, the equity infusion will be carried out in the ratio 34%, 17% and 49% between GSPC, GPCL and third-party investor Swan Energy, respectively. The debt requirement has been tied-up by Rural Electrification.

The first phase of the project envisages the construction of two 351MW units, while the second phase envisages expanding the plant capacity by another 351MW. The first gas-fired unit is expected to be commissioned in December this year and the second unit by March 2011.

Bharat Heavy Electricals Limited (BHEL) has been appointed as the EPC contractor of the project. GPPC was set up to implement a power project catering to energy requirements in Gujarat, especially the Saurashtra region.