GMR Energy, an arm of Bangalore-based GMR Infrastructure, has decided to pump Rs 4 billon in order to relocate and restart its barge-mounted naphtha fired power project from Mangalore on the west coast to Kakinada on the east coast in Andhra Pradesh.

As per media reports, the new plant will be functional by March 2010.

GMR had decided to relocate the plant after its power purchase agreement (PPA) with the Karnataka government ended in June 2008.

According to reports, the conglomerate is operating the plant at Mangalore on a merchant basis and supplying power to the state grid at Rs 5.50 per unit.

Shares of the company gained Rs 1.6, or 1.02%, to settle at Rs 159.15. The total volume of shares traded was 8,820,741 at the BSE (Friday).