GMR Infrastructure has agreed to sell a 30 per cent stake in GMR Energy (Singapore) (GMRE) to Malaysia’s Petronas International Corporation, subject to the approval of lenders.

Bangalore-based GMR acquired a 100 percent stake in the project from US-based InterGen.

GMRE is developing the 800 MW combined-cycle gas turbine Island Power power plant on Jurong Island, Singapore, which will be fuelled by LNG. The plant is scheduled to start commercial operation in 2013. Fuel supply has been contracted for 16 years.

A senior GMR official said: “We had got Island Power project at a very competitive price, and Singapore is a good market. There is no roadmap to further reduce our stake in this project.”

GMR officials said that the company’s relationship with Petronas could help pave the way for opportunities between the groups in India.

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