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Our Bureau

Mumbai, Nov. 30 The board of Reliance Energy Ltd will meet on Sunday to consider proposals for raising long-term resources for its infrastructure projects, including the Sasan and Krishnapatnam ultra mega power projects.

The funds could be raised by way of preferential allotment of equity, equity-related securities and long-term debt, said a company statement on Friday.

REL’s wholly owned subsidiary, Reliance Power Ltd, has been awarded the 4,000-MW imported-coal based Ultra Mega Power Project (UMPP) at Krishnapatnam, Andhra Pradesh, which will have an estimated capital outlay of Rs 20,000 crore.

Reliance Power was given the ‘letter of intent’ on Friday by the Power Finance Corporation for the project.

This is in addition to the 4,000-MW domestic-coal based UMPP at Sasan, Madhya Pradesh, that the company bid for and won. This project involves an estimated capital outlay of Rs 18,000 crore.

The company’s winning bid for the Krishnapatnam project was at a power supply cost of Rs 2.33 per unit. The company will have to import about 17 million tonnes of coal a year once the plant goes on-stream. The power project will be formally transferred from a shell company floated by Power Finance Corp.

REL is exploring various options like acquiring stakes in overseas mines or long-term coal supply agreements with coal exporting countries such as Indonesia, South Africa and Australia.

Reliance Power’s estimated capital outlay for these two projects alone aggregates approximately Rs 38,000 crore. In addition, Reliance Energy and its group companies are implementing several large infrastructure development projects in the areas of metro railways, roads and real estate.

More Stories on : Power | Outlook | Reliance Energy Ltd

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