Reliance Power on Thursday announced financial closure of its 4,000 MW Krishnapatnam Ultra Mega Power Project (UMPP) being developed by Coastal Andhra Power Ltd. (CAPL), its wholly-owned subsidiary.
The estimated cost of the project is Rs. 17,500 crore and is being financed at a 75:25 debt equity ratio. IDBI Bank is the lead arranger for the debt facility with Power Finance Corporation (PFC) acting as joint lead arranger.
A consortium of over 15 banks and financial institutions are participating in the financing arrangements. The Krishnapatnam UMPP is the largest power project in South India and will supply power at a competitive tariff of Rs. 2.33 per kWh to 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.
The Krishnapatnam financing is an important milestone as we undertake the implementation of our power project portfolio of over 37,000 MW,” Reliance Power CEO J. P. Chalasani said.