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Home News Power Sector News R-Power achieves financial closure for 4,000 mw Krishnapatnam UMPP

R-Power achieves financial closure for 4,000 mw Krishnapatnam UMPP

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ADAGReliance Power has achieved financial closure for its Rs 17,500 crore ultra mega power project at Krishnapatnam in Andhra Pradesh, the company said in a release. This is the second of the company's three UMPPs for which funds have been arranged. The debt-equity ratio of the 4,000 mw project is 75:25 and a consortium of 15 banks and financial institutions have agreed to provide the debt for the imported coal-fired project. Life Insurance Corporation, Rural Electrification Corporation, Punjab National Bank and Union Bank are part of the consortium. IDBI Bank and Power Finance Corporation were the lead arrangers for the debt facility, according to the release.

JP Chalasani, chief executive, Reliance Power, said in a statement that with this the company has tied-up funds for 10,000 mw. The company bagged the project in November 2007.
The first phase of 800 mw is expected to be commissioned by 2013. The project was stuck at the land acquisition level with the local authorities hitting road blocks in acquiring the land required for the project. However, the officials have successfully completed the land acquisition.

"We wanted about 2,700 acre and so far we have over 2,600 acre. Even for the remaining land, the process is on," a source tracking the project told DNA Money.

The company has also developed two roads along NH 5 (Chennai-Kolkata) for transportation of heavy machinery including turbines without having to enter or go through the villages. "The roads to Krishnapatnam port are also ready. We were all waiting for the financial closure. Otherwise, we are ready to take the project forward in every sense," he said.

Of the 4,000 mw power generated, the plant will supply about 1,600 mw to Andhra Pradesh and 800 ,w each to Maharashtra, Tamil Nadu and Karnataka.

"More than us, the power starved states would be happy since the project will assure the supplies at lowest rate as against Rs 14 per unit they are spending on purchasing power from merchant suppliers in other states," he explained.

Reliance Power tied-up debt for the Rs 14,550 crore project at Sasan, Madhya Pradesh, in April.

The third UMPP being developed by Reliance is at Tilaiya in Jharkhand. Both these UMPPs have a capacity of 4,000 mw each. The only other UMPP awarded by the government is by Tata Power at Mundra in Gujarat.

Reliance Power has an operational capacity of over 1,000 mw and is developing 35,000 mw.

Source- DNA

 

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