Reliance Power ties up funds for Krishnapatnam project

Reliance Power Ltd. | Power Generation/Distribution | Power | BSE: 532939 | NSE: RPOWER

09 Jul 2010 Evaluate

Reliance Power has achieved financial closure for the 4,000-MW Krishnapatnam Ultra Mega Power Project developed by its wholly-owned subsidiary Coastal Andhra Power. All financial agreements have been executed for the imported-coal fired project, whose estimated cost of Rs 17,500 crore is being financed at a 75:25 debt-equity ratio. The project is scheduled for commissioning in 2013.

IDBI Bank is the lead arranger for the debt, with Power Finance Corporation as joint lead arranger. A consortium of over 15 banks and financial institutions participating in the financing include Rural Electrification Corporation, LIC, UCO Bank, Union Bank, Andhra Bank, Corporation Bank, Punjab National Bank, Indian Overseas Bank, Andhra Bank, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, Vijaya Bank, Punjab and Sind Bank, Yes Bank and Indian Bank. The financing of the Krishnapatnam UMPP is said to be one of the largest debt raising exercises in the country.

With the financial closure for the Krishnapatnam UMPP, RPower has completed the financing arrangements for two UMPPs awarded by the Government of India and have secured funding for a capacity of 10,000 MW.

The Krishnapatnam financing is an important milestone as it undertakes the implementation of our power project portfolio of over 37,000 MW. The Krishnapatnam UMPP is the largest power project in South India which will supply at a competitive tariff of Rs 2.33 per kWh to Andhra Pradesh (1,600 MW), Maharashtra (800 MW), Tamil Nadu (800 MW), and Karnataka (800 MW).

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