November 22, 2008

ADB may lend USD 500 million loan for Krishnapatnam UMPP

BS reported that Reliance Power will get a USD 500 million loan from the Asian Development Bank for the 4,000 MW ultra mega power project coming up at Krishnapatnam in Andhra Pradesh.

With this, Reliance Power is expected to achieve financial closure shortly. The project may cost over INR 18,000 crore, of which about 80% will be debt. Reliance Power is in discussions with Manila based ADB and a project appraisal team will come to India within 2 weeks for the final round of discussions.

Reliance Infrastructure, the engineering, procurement and construction contractor for the project, is in talks with leading global power equipment manufacturers for sourcing boilers, turbines and generators for the project.

The coal fired Krishnapatnam project is the third of the 9 UMPPs planned by the central government to bridge the 20,000 MW power deficit in India. The shortage is expected to shoot up by 15% to 20% every year. Andhra Pradesh will get about 1600 MW from the project while Tamil Nadu, Karnataka and Maharashtra will get 800 MW each.