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Reliance Power begins process for financial closure of Tilaiya UMPP

01 Aug 2011 Evaluate

Reliance Power has initiated the process of arranging funds for its 4,000 MW ultra mega power project at Tilaiya in Jharkhand. Reserve Bank of India (RBI) has given the in-principle approval for raising external commercial borrowings (ECB) of $2 billion. The financial closure is expected to be financed at a debt to equity ratio of 75:25. The power and coal mine put together are estimated to cost around Rs 24,000 crore.

For the construction of the power project majority of land has already been acquired and environment clearance has also been obtained. Water required for the power plant has been allocated by the government from the Tilaiya reservoir which is located at a distance of about 4 kms from the power plant. The first unit is scheduled to be commissioned in May, 2015 and the entire project by May, 2017, as per the Power Purchase Agreement (PPA). Tilaiya Ultra Mega Power Project (UMPP) is a pit-head power project and has been allocated two captive coal mine blocks, Kerandari B and C, having reserves of almost 1.3 billion tonne. 

Tilaiya UMPP is 3,960 MW (6 super-critical units of 660 MW each) power project at Hazaribagh district, Jharkhand. It is the third UMPP in Reliance Power's portfolio. The project is being developed by Jharkhand Integrated Power Limited which is a wholly owned subsidiary of the company. The power project is expected to start generating power from the year 2015. The project was awarded for development to the company through a competitive bidding process and transferred to the company in August, 2009.

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