In what is seen as the first fully-owned Malaysian company to penetrate the tough Indian power sector, Asian Gateways Construction Sdn Bhd (AGC) has secured a 30-year contract to supply power -- projected to generate about RM1.028 billion in annual profit for the company. After two years of intense negotiations, AGC signed the power purchase agreement (PPA) with PTC India Ltd, paving the way to build and operate a staggering RM5.48 billion thermal coal-fired power plant in Krishnpatnam in Andra Pradesh. "It is 100 percent Malaysian project. This project is classified as a mega project by the Indian government and AGC will enjoy tax-free status," a jubilant AGC executive chairman/managing director, Datuk Seri Ho Seng Kung, told Bernama news agency after clinching the deal here Wednesday. "The duration of the project is 25 years with an extension of another five years and the total capacity of the plant is 1,600 megawatts (MW). --MORE
