GSPC Pipavav Power Company Limited (GPPC), plans to set up a 1,053 MW gas-fired combined cycle power plant project at Pipavav in Gujarat, a top company official said.

GPPC is a a Special Purpose Vehicle (SPV) set up by GSPC (Gujarat State Petroleum Corporation) along with GPCL (Gujarat Power Corporation Ltd) to implement a power project catering to energy requirements in Gujarat.

"We are planning to set up a gas-based combined cycle power plant project in Gujarat. The first phase envisages the construction of two 351-MW gas-based power plant," GSPC's Managing Director, Tapan Roy, told PTI here today.

The first 351-MW unit is scheduled to be commissioned in December 2010 and the second unit by March 2011, Roy said, adding the second phase of the project envisages expanding the capacity of the power plant by another 351 MW.

The project cost is estimated at Rs 2,545 crore that would be funded through 20 per cent of equity and 80 per cent of debt. However, the debt requirement to the extent of Rs 1,935 crore has been tied-up by Rural Electrification (REC).

The equity infusion would be carried out in the ratio 34 per cent, 17 per cent and 49 per cent between GSPC, GPCL and third-party investor, Swan Energy, respectively, he said.

GPPC has appointed Bharat Heavy Electricals Limited (BHEL) as the EPC contractor through international competitive bidding (ICB) route and the Notice to Proceed (NTP) was handed in March 2008, Roy said.