GMR to sell energy business stake to Petronas

September 26th, 2011 - 8:50 pm ICT by IANS  

Bangalore, Sep 26 (IANS) Diversified conglomerate GMR group Monday said it has agreed to sell a 30 percent stake in its power subsidiary GMR Energy to Malaysia-based oil and gas major Petronas International.

“This relationship between GMR and Petronas opens up powerful synergy going forward for both the Groups,” said GMR Group chairman G.M Rao.

According to Rao, the partnership has the potential to unleash enormous amounts of untapped potential in energy sector in the region.

“It is symbolic of true South-South cooperation and its immense potential in the energy market in the region,” Rao said.

The company further said that its new partnership with the southeast Asian oil and gas giant would open new possibilities for cooperation in India or any other country.

“This relationship would pave the way for other possible opportunities between the groups in India as well as internationally,” the company said in a statement.

The company did not divulge any financial details of the deal which is subject to the lenders approvals.

Currently, GMR is developing an 800 megawatt combined cycle gas turbine (CCGT) power plant on Jurong Island, Singapore.

“The power generating facilities, featuring Siemens’ latest F-class gas turbines, will be designed and constructed by a consortium consisting of Siemens and Samsung,” the statement said.

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