GVK Power in deep red
GVK Power is a big loser on the BSE today, down over 4% at Rs.8.01 and the stock had hit a new 52-week low at Rs.6.87 on 13th June’13.
The stock is down deep in the red today after the company stated that it has decided to exit the Shivpuri- Dewas highway project due to unavailability of land and regulatory related issues. The company had got this contract, to construct 330 kms of national highway at Madhya Pradesh and was to cost Rs.4000 crore. It had already tied up the entire loan amount and IDBI had fully underwritten it. With the Supreme Court now making it mandatory to get environmental clearances for projects which need excavation and such work, the company was dismayed over the further expected delays now in getting clearances.
The company has a hydro power plant, built on the river Alaknanda near Srinagar town in Pauri district of Uttarakhand. Given thedevastation caused by floods in the region, there is news that the company’s power plant could have also suffered damage. There is no official news yet from the company.