Dear Shareholders
Amidst various challenges faced by the power generation companies
during recent quarters and the power sector as a whole in India, I am
pleased to report that KSK Group has continued its asset setup progress
and now crossed 900 MW of aggregate generation capacity on ground. As a
result of Company''s continuous focus on optimizing generation from
earlier operational power plants and with addition of new generation
capacities from VS Lignite and Wardha, the generation stood at 2,793
million units as against 1,001 million units during the previous year.
KSK has registered an impressive growth in operational capacity while
simultaneously experiencing pressures and volatilities with respect to
fuel supplies, government policies and tariff realization. It is our
belief that, while these developments could last for few quarters, this
is only a temporary passing phase as the company has marshalled
multiple efforts and strategies to deal and further strengthen the fuel
security issues in the fast changing environment and emerge as one of
the more stable and stronger player in the Indian power generation
landscape. Also, the Company''s effort to the alternative coal linkages
has begun and we expect this to provide necessary impetus to margin
improvements.
Further on the construction side, significant progress has been made
with respect to the 3600 MW KSK Mahanadi Power Project at Nariyara,
Chhattisgarh with boiler drum lifting for two units having been
achieved in recent months and hydro test targeted to be completed for
both the units before end of the current financial year. With continual
progress in the construction activity at this project site, the Annual
Report 2010-11 | KSK Energy Ventures Limited
Company anticipates to commission these two units during the second
half of 2012 and the balance units thereafter through 2013 and 2014. We
believe upon successful completion, this will be one of the largest
single location green field projects in India and reinforce the strong
project development capabilities of KSK.
While the Company continues its dedicated focus on the construction and
setup of the main power plant, the parent and its group companies are
supplementing the same through the development of necessary ancillary
infrastructure that supports the large power project being developed by
KSK. We believe this synergy would enable an immediate synchronized
development approach on ground and also provides the Company necessary
flexibility to consolidate the power plant with the ancillary
infrastructure at a later stage based on internal accruals.
We believe that economic empowerment of our communities alone can help
us ensure sustainability of the development that we undertake. At KSK,
sustainability initiatives are an integral part of the corporate
strategy and we contribute to the community by carrying our business in
such a way that ensures overall socio economic development of the areas
in which we setup or operate.
Despite certain sectoral challenges and project specific issues such as
fuel supplies that are being addressed, it is our belief that the
Company is well positioned to catapult itself, in the next few years,
to be the single largest independent private power producer with an
established operating track record, strong technical, financial and
commercial capabilities. A great deal of dedication and commitment has
been shown by operating team which enabled us to meet our growth
objectives. I would like to take this opportunity to acknowledge their
important contributions.
With the best yet to come, I would conclude that there are exciting and
challenging times ahead of us and thank all the partners of our growth
and shareholders for their continual support.
T.L. Sankar
Chairman
|