Reliance Energy on a hydel power trip
Reliance Energy (REL), a part of R-ADAG group, is looking at hydel power generation for future growth.
By Nevin John, TNN |
MUMBAI: Reliance Energy (REL), a part of R-ADAG group, is looking at hydel power generation for future growth.
The largest private power distribution company in the country, which also generates 940MW through thermal projects, is planning to set up three hydel projects, having an aggregate 1,980MW. If successful, REL will invest almost Rs 7,000 crore, and raise around Rs 5,600 crore as debt. Senior officials said the three projects are expected to achieve financial closure this fiscal.
REL is exploring hydro-based new power generation projects in Himachal Pradesh, Uttarakhand, and Arunachal Pradesh and also in neighbouring countries like Nepal and Bhutan, according to company’s annual report.
It has already completed a detailed feasibility study for the 280MW Urthing hydro power project in Uttaranchal. After necessary approvals, REL will tie up for funds in 80:20 debt-equity ratio. REL has entered into an agreement with Arunachal Pradesh government for development of two hydro projects at Tato (700MW) and Siyom (1,000MW), for which preliminary studies are being conducted.
According to REL’s annual report, the company is working on various generation projects — thermal and hydro — of 14,960MW at a cumulative investment of Rs 60,000 crore. If they raise fund in 80:20 debt-equity ratio, REL will raise Rs 48,000 crore debt — that is, if REL is successful in implementing these proposed projects. Out of the six projects, which also includes the much-delayed Dadri project, only one project — 1,200MW Rosa project — has achieved financial closure, said sources. The gas-fired 7,480MW project in Dadri is still hanging fire, though Uttar Pradesh chief minister showed green signal.
The project has seen a major delay as the proposed gas supply contract with RIL is still subjudice. In the first phase, the company is planning to set up 5,600MW facility with Rs 15,400 crore capex. The second phase will be completed in six months after the completion of first phase, said an REL official.
REL has acquired 2,100 acres for Dadri project. The project has received all major statutory approvals including those from pollution control board, environment ministry and water authority.
The company has also initiated a process for the selection of EPC contractor through international competitive bid.
Reliance Energy Generation has signed an MoU with the Maharashtra government to set up a 4,000MW project at Shahapur. During 2008-09, phase one of the 1,200MW imported coal-fired project is expected to achieve financial closure and construction work is also likely to commence.
The land acquisition for the project is currently under progress and bids for selection of EPC contractor through international competitive bidding has been invited. The entire capacity of 4,000MW is expected to be commissioned by 2012.
The largest private power distribution company in the country, which also generates 940MW through thermal projects, is planning to set up three hydel projects, having an aggregate 1,980MW. If successful, REL will invest almost Rs 7,000 crore, and raise around Rs 5,600 crore as debt. Senior officials said the three projects are expected to achieve financial closure this fiscal.
REL is exploring hydro-based new power generation projects in Himachal Pradesh, Uttarakhand, and Arunachal Pradesh and also in neighbouring countries like Nepal and Bhutan, according to company’s annual report.
It has already completed a detailed feasibility study for the 280MW Urthing hydro power project in Uttaranchal. After necessary approvals, REL will tie up for funds in 80:20 debt-equity ratio. REL has entered into an agreement with Arunachal Pradesh government for development of two hydro projects at Tato (700MW) and Siyom (1,000MW), for which preliminary studies are being conducted.
According to REL’s annual report, the company is working on various generation projects — thermal and hydro — of 14,960MW at a cumulative investment of Rs 60,000 crore. If they raise fund in 80:20 debt-equity ratio, REL will raise Rs 48,000 crore debt — that is, if REL is successful in implementing these proposed projects. Out of the six projects, which also includes the much-delayed Dadri project, only one project — 1,200MW Rosa project — has achieved financial closure, said sources. The gas-fired 7,480MW project in Dadri is still hanging fire, though Uttar Pradesh chief minister showed green signal.
The project has seen a major delay as the proposed gas supply contract with RIL is still subjudice. In the first phase, the company is planning to set up 5,600MW facility with Rs 15,400 crore capex. The second phase will be completed in six months after the completion of first phase, said an REL official.
ADVERTISEMENT
REL has acquired 2,100 acres for Dadri project. The project has received all major statutory approvals including those from pollution control board, environment ministry and water authority.
The company has also initiated a process for the selection of EPC contractor through international competitive bid.
Reliance Energy Generation has signed an MoU with the Maharashtra government to set up a 4,000MW project at Shahapur. During 2008-09, phase one of the 1,200MW imported coal-fired project is expected to achieve financial closure and construction work is also likely to commence.
The land acquisition for the project is currently under progress and bids for selection of EPC contractor through international competitive bidding has been invited. The entire capacity of 4,000MW is expected to be commissioned by 2012.
ADVERTISEMENT
Thanks to land overlapping issues with another power utility at Shahapur, rumours were afloat that REL would be asked to trim down the capacity to 2,400MW, and shift the remaining 1,600MW capacity to a different location. However, a senior REL official said the company had not received any instructions from the state government.
REL had emerged as the successful bidder for setting up a 300MW captive power project in Nagpur, which is coal-based, for supply to industrial customers. Maharashtra Industrial Development Corporation (MIDC) had invited bids for the project.
REL expects to achieve the financial closure and commencement of the construction work in 2008-09. It has already acquired 175 acres for the project, while 50 acres is under acquisition. The EPC contractor for the project is under finalisation.
The project is being implemented by Vidarbha Industries Power, in which REL has 74% stake, said REL official. Meanwhile, REL has gone ahead with the construction for the 600MW phase-I Rosa project.
It has already obtained possession of 1,465 acres and has signed power purchase agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam to supply power at Rs 2.69 per unit. The EPC contract has been awarded to Sanghai Electric Corporation. The development work on phase-II (600MW) has also begun, and the construction is likely to commence soon.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
