Wednesday, October 22, 2008

Reliance Power gets funding for phase-II of Rosa project

Anil Dhirubhai Ambani Group (ADAG) company Reliance Power (R-Power) has tied up with the IDBI Bank-led consortium of domestic banks to secure the debt portion for the second phase of the 600-MW Rosa Power project in UP’s Shahjahanpur district.

The consortium will lend around Rs 2,000 crore out of the total project cost of Rs 2,702 crore. The remaining amount will be funded through equity.

While IDBI will fund Rs 500 crore, India Infrastructure Finance Company (IIFCL) will offer Rs 465 crore. Canara Bank, Syndicate Bank and United Bank of India will provide Rs 200 crore each. The Small Industries Development Bank of India (Sidbi) and the Life Insurance Corporation of India (LIC) will offer Rs 100 crore and Rs 80 crore respectively, while Axis Bank will offer a foreign currency loan of $50 million, said sources.

Rosa Power Supply Company (RPSCL), a wholly-owned subsidiary of Reliance Power, is implementing a 600 MW coal-based power plant at Rosa in two phases. The company had achieved the financial closure for the first phase in January 2007.

The first phase is slated for commissioning in the second quarter of 2009, nine months ahead of schedule. Work on the second phase is expected to be completed by early 2010.

Sources said the second phase of the project would also be coal-based and would come up at the same location, for which the company has already got clearances from the UP government.

RPSCL has already executed the fixed-price and time-based engineering, procurement and construction (EPC) contract with Shanghai Electric and Utility Energytech and Engineers Private Ltd for the second phase. The company has applied to the Ministry of Coal for obtaining coal linkages for the second phase and plans to enter into a coal transportation agreement with the Indian Railways, sources said.

Reliance Power is planning to implement projects to produce over 30,000 MW in various parts of the country.