RelPower achieves financial closure for Krishnapatnam UMPP

Reliance Power Ltd., part of the Anil Dhirubhai Ambani Group (ADAG), achieved financial closure for its Krishnapatnam ultra-mega power project (UMPP) in Andhra Pradesh. Reliance Power said that the estimated cost of the project is Rs175bn. IDBI Bank was the lead arranger of the Rs131.25bn debt with Power Finance Corp acting as joint lead arranger. A consortium of over 15 banks and financial institutions are participating in the financing arrangements. The 4,000 MW coal-fired project is being financed in 75:25 debt-equity ratio, Reliance Power said. The project will supply power at a competitive levelised tariff of Rs2.33 per kilo-Watt-hour (or unit) to the four states - Andhra Pradesh (1,600 MW), Maharashtra (800 MW), Tamil Nadu (800 MW) and Karnataka (800 MW). "With the financial closure for the Krishnapatnam UMPP, we have completed the financing arrangements for two UMPPs awarded to us by the Government and have secured funding for a capacity of 10,000 MW," CEO JP Chalasani said. The company had earlier achieved financial closure of Sasan UMPP. Reliance Power has also bagged UMPP at Tilaiya. Under current Government regulation it cannot bid for another UMPP before completing work on at least one of these projects. The Chitrangi power project in Madhya Pradesh will be fourth 4,000 MW project for Reliance Power, but it does not have a UMPP status.