GVK Energy Ltd, a subsidiary of GVK Power & Infrastructure Limited, will invest Rs.40,000 crore to produce 6,400 MW of electricity in Andhra Pradesh.

The firm Friday signed four memorandums of understanding (MoUs) with the state government for four projects during the Partnership Summit 2012.

It will set up two coal-based power projects of 2,640 MW each and will add capacity to the two existing gas-based projects.

The super critical thermal power projects (4x660), will come up in coastal Andhra with an investment of Rs.16,000 crore each. While one project will be Indian coal based, the other will use imported coal.

Asked if the company would be importing coal from Australia, GVK power managing director Ram Bhupal told reporters here that the company was looking at different options.

The company will finalise the locations near the existing or proposed ports after a feasibility study, he added.

The company will sell entire power to be produced from one plant to state-owned power distribution companies. From the second plant, part of the power would be sold to distribution companies and part of it will be on merchant basis.

Both the projects will be financed in the debt equity ratio of 4:1 and the first phase of both is expected to be commissioned in 2017-18.

The company also signed agreements to increase the capacity of its gas-based power projects at Jegurupadu and Samarlakota, both situated in coastal Andhra district of East Godavari.

"We are confident that the gas will be made available for the expansion," said Bhupal.