The Hindu Business Line : AP Govt bids to tap JBIC aid for Krishnapatnam project

THE State Government plans to negotiate with the Japan Bank for International Co-operation (JBIC) to fund the Rs 8,000-crore, 800x2 MW Krishnapatnam coal based power plant.

The State Government is in the process of mobilising about Rs 3,200 crore from various lending agencies and financial institutions for some of the proposed power projects. It is proposed to add about 2,650 MW.

A substantial amount of Rs 3,200 crore is being deployed into the Bhoopalpalli (500 MW) and VTPS, Stage-IV (500 MW), according to a statement from the Chief Minister's Office.

Equipment will be supplied by Hitachi Company of Japan. A team from Japan will finalise the contractual conditions funding to Jurala Power Project, valued at Rs 500 crore.

Rural Electrification Corporation, a Government enterprise, and Oriental Bank of Commerce, State Bank of India, Andhra Bank have agreed to finance the new projects coming up in the State.

The Chief Minister, Dr Y.S. Rajasekhara Reddy, today directed the officials of the Energy Department to prepare a blueprint to commission the following power projects on a time-bound programme in the X & XI plan. The installed capacity of State is 11,600 MW.

It is estimated that the State would have to raise Rs 12,625 crore for four projects including the Krishnapatnam 1,600-MW plan. Apart from the 500-MW Bhoopalapalli (Rs 1,648 crore with 80 per cent debt), the 500-MW VTPS, State IV (Rs 1,680 crore), the 2x25 MW Nagarjunasagar tail pond (Rs 372 crore), the 2x800 MW Krishnapatnam plans are among the projects which would require Rs 10,100 crore through debt funding, with an equity component of Rs 2,525 crore.

Given the backdrop of the State Government's move to supply free power to 95 per cent of farmers and uninterrupted power supply to industries and domestic consumers, the Chief Minister favoured a special thrust to power projects.

The Government expects the State would be able to commission about 804 MW by 2007 through Rayalaseema Thermal Power Station (RTPP) (420 MW), Jurala Hydel Power Project (234 MW) and Nagarjunasagar Tailpond (50 MW).

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