Reliance Power to spend $11 billion installing 10 GW

• 14 years ago (2010-09-30)
• Junior Isles

Renewables 776

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Reliance Power, India's top private energy company, has negotiated the country's biggest financing deal, raising more than $11 billion to build 10 GW of thermal power generation capacity.

"The money raised has helped financial closure for two ultra-mega power projects of 4000 MW each -- at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh," said Reliance ADA Group Chairman Anil Ambani.

The move is part of the company’s ambitious plan to invest about $17.75 billion over the next three years to increase thermal power generation capacity by 20 GW.

"Reliance Power will have operational capacity of 5000 MW by 2012 and commission another 20 GW over the next three years (by 2015)," Ambani said at the company's annual general meeting.

Reliance Power has three of the four ultra-mega power projects awarded by the Indian government and currently generates 6000 MW. The fourth project is the 4000 MW Tilaiya development in the Indian state of Jharkhand.

The company said the cost of generation infrastructure to produce one megawatt of electricity is about $888 000.

Ambani also announced an outlay of $2.21 billion for the 2400 MW power project at Samalkot in the Indian state of Andhra Pradesh. The construction for this unit, which has already started, will be completed by 2012, he told shareholders.

The group also plans 10000 MW of gas-based power projects, with feedstock coming from the fields of the Krishna-Godavari basin, off the coast of Andhra Pradesh.

Reliance Power is set to invest about $6.66 billion for setting up hydropower projects in Arunachal Pradesh in order to enhance its clean energy portfolio, according to the company's CEO, JP Chalasani.

The group reportedly remained bullish on other renewable sources of power such as wind and solar. "The renewable portfolio of the company will comprise 600 MW of solar and 400 MW of wind projects," said Chalasani.

The company's power generation capacity from all sources of energy is expected to touch 35000 MW by 2017.