Business

Reliance Rosa Power Phase-I by 2009

NEW DELHI: Anil Dhirubhai Ambani-owned Reliance Power is all set to commission the first phase of the 600 MW Rosa Power project in 2009, almost a year ahead of schedule.

The project is being executed by Rosa Power Supply Company, a wholly-owned subsidiary of Reliance Power, and funding for Phase-I and Phase-II has also been tied up.

According to company sources, the company had completed the commissioning of boiler turbine generator (BTG) in October and when commissioned this project would be the first private power project in North India.

The generation of 600 MW of power in the first phase would be totally dedicated to Uttar Pradesh. Reliance 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 project located in Shahjahanpur district.

The consortium will lend around Rs. 2,000 crore out of the total project cost of Rs. 2,702 crore. The balance will be funded through equity. Work on the second phase is expected to be completed by early 2010.

Rosa Power had 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.

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. Small Industries Development Bank of India (SIDBI) and 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, sources said.

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

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