RPower ties-up funds for Krishnapatnam UMPP

Anil Dhirubhai Ambani group company Reliance Power on Thursday announced the financial closure of its 4,000 megawatt  Krishnapatnam ultra mega power project (UMPP). The company has raise debt to the tune of Rs 13,125 crore from 15 banks to finance this project which has an estimated cost of Rs 17,500 crore.

The project is financed on a debt-to-equity ratio of 75:25 and a consortium of 15 banks and financial institutions participated in the financing arrangements. The consortium includes Rural Electrification Corporation, Life Insurance Corporation, 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.

IDBI Bank is the lead arranger for the debt facility with Power Finance Corporation acting as joint lead arranger.

The coastal power project Krishnapatnam UMPP is based on imported coal, located in Andhra Pradesh is also the largest power project in South India which is in the implementation stage. The project will supply power at a competitive levelized tariff of Rs 2.33 per unit, to the four states. It will supply 1,600 megawatt to Andhra Pradesh, 800 megawatt to Maharashtra, 800 megawatt to Tamil Nadu, 800 megawatt to Karnataka. Reliance won the project in November 2007 in a competitive bid process conducted by the central government.  

"With the financial closure for the Krishnapatnam UMPP, we have completed the financing arrangements for two UMPPs awarded to us by the government of India and have secured funding for a capacity of 10,000 megawatts. The Krishnapatnam financing is an important milestone as we undertake the implementation of our power project portfolio of over 37,000 megawatt," said J P Chalasani, CEO of Reliance Power. Reliance has achieved financial closure of Sasan UMPP in April last year.