Reliance Power's 4,000-MW Krishnapatnam ultra-mega power project is facing road blocks due to various reasons, including a recent change in Indonesian law which mandates all parties to sell coal at market prices. Earlier, Indonesian coal mines had the freedom to bilaterally agree coal prices with buyers. The recent change in law will impact the viability of this project as well as others that are based on imported coal, especially from Indonesia.
Other issues impacting the Krishnapatnam Project include the condition of the soil where the foundation for the boiler has to be laid and land disputes at strategic locations. 90 per cent boundary work completed. Soil investigations for sea water intake systems are in progress and work on boiler foundation has not yet started.
The Krishnapatnam UMPP was originally a 5x800 MW project, which was later configured to 6x660 MW. It is expected that the project will start generating power from the year 2013 and will be completed before the contemplated schedule. The project achieved financial closure in July, 2009. The lenders for the project are a consortium of almost 12 banks lead by IDBI and the lending was done on a project finance basis for an estimated project cost of around Rs 17,450 crore ($ 4 bn) with a debt-equity ratio of 75:25.
| Company Name | CMP |
|---|---|
| NTPC | 394.70 |
| Tata Power | 443.00 |
| Adani Power | 229.10 |
| Power Grid Corp | 315.75 |
| Torrent Power | 1733.45 |
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