July 8: The Anil Ambani group company Reliance Power has secured the financing for its 4000 MW Krishnapatnam Ultra Mega Power Project (UMPP) under construction by Coa-stal Andhra Power Ltd, its wholly owned subsidiary. The coal fired plant is estimated to cost Rs 17,500 crore financed at a debt equity of 75:25.
Located in Krishnapatnam, in Andhra Pradesh the UMPP is the largest power project in South India and is expected to come up by 2013. It will supply power at a levelised tariff of Rs 2.33 / kWh to the four states viz. AP (1,600 MW), Maharashtra (800 MW), Tamilnadu (800 MW), and Karnataka (800 MW).
This is the second financial closure the company has achieved, the earlier one being for Sasan. Sources say that though the first unit of Sasan in Madhya Pradesh was to come up by March 2012 it is expected to be delayed as the company is yet to get adequate water supply for the project.
Mr J.P. Chalasani, CEO of Reliance Power said “With the financial closure for the Krishnapatnam UMPP, we have completed the financing arrangements for two UMPPs awarded to us by the Centre and have secured funding for a capacity of 10,000 MW. The Krishnapatnam financing is an impo-rtant milestone as we undertake the implementation of our power project portfolio of over 37,000 MW.”