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KFW loan likely for AP thermal unit

V. Rishi Kumar

HYDERABAD, Nov. 26

THE Andhra Pradesh Government and AP Genco are in an advanced stage of negotiations with German funding agency KFW to firm up a Rs 1,500-crore loan for an additional 660 MW single-unit thermal power plant at the existing Vijayawada thermal power station.

The Chairman and Managing Director of AP Genco, Mr J. Parthasarathy, told Business Line that the detailed project proposals prepared by the corporation in league with its consultants were discussed by a team of experts who visited the State recently. The German Government has cleared the proposal.

``We are expecting the funding for this biggest single boiler unit in the country to materialise by December end. This will be in addition to the 2x210 MW Stage II expansion plan of the Rayalaseema thermal power plant, located at Muddanur in Cuddapah dis trict, which has received coal linkage from Talcher/Ib Valley coalfields in Orissa,'' he said.

The erstwhile APSEB had proposed to establish a 500 MW power plant at its VTPS project site as an expansion of the existing thermal power station using the already available infrastructural facilities such as land, water and railways siding facilities.

A detailed project feasibility report was prepared by Desein Private Ltd. The Ministry of Power had already recommended to the Ministry of Coal for according coal linkage. The project is expected to come up in the Tenth Plan.

Funding for equipment supply for the 420 MW (210x2) plant at Muddanur (Rayalaseema) had been tied up with Bank of China and Kotak Mahindra. This project is to be implemented by ZMEC, a Chinese Corporation.