After bagging the 4,000 mw ultra mega power project (UMPP) at Sasan in Madhya Pradesh, the Anil Dhirubhai Ambani Group (ADAG) company Reliance Power has launched the development of another coal-based project with a generation capacity of 3,910 mw in Madhya Pradesh with an investment of Rs 18,000 crore. The company has already signed the state support agreement with the Madhya Pradesh government.
The proposed thermal project, which is the part of Reliance Power’s plan to create generate capacity of 28,500 mw in next 10 to 12 years, would be developed on 80:30 debt-equity ratio. Of the Rs 18,000 crore, the company would raise Rs 8,900 crore through external commercial borrowings and Rs 6,000 crore of rupee loan. The balance would be its equity.
Reliance Power has received letter from the Madhya Pradesh Power Corporation (MPPC) for the purchase of 1,200 mw of the proposed project at Rs 2.34 per unit. The company sources told FE , ‘‘The project will be developed in four years after signing the power purchase agreement with various utilities. The company is, at present, in talks with Maharashtra, Harayana, Mumbai utilities for the sale of the balance power. The company will seek coal linkage of 15 million tonne for the proposed project.’’
Sources informed that six units of 600 mw would be installed. Reliance Power would weigh various options of sourcing power plants and equipment from India and foreign manufacturers including Chinese. According to sources, the Madhya Pradesh government has assured to help in the land acquisition and water supply for the project. Further, the project would get mega powr project status as Reliance Power proposes to sell power to more than one buyer. The mega power enjoys concession in customs duty on equipments and raw materials.