Reliance Power to downsize unit capacities for Krishnapatnam UMPP

Apparently, finding it hard to source 800 MW power units, Reliance Power Limited (RPL) has now proposed to reconfigure the sizes of the generation units of its ultra mega power project (UMPP) at Krishnapatnam. The 4,000 MW project, which was originally conceived with the installation of five 800 MW units of supercritical parameters, will now have six units of 660 MW capacity, each. Thus, the UMPP will now have an installed capacity of 3,960 MW, instead of 4,000 MW, same as that of RPL's first ultra mega venture at Sasan in Madhya Pradesh. The project is being implemented by Coastal Andhra Power Limited (CAPL), a wholly-owned subsidiary of RPL, in the Nellore district of Andhra Pradesh.

According to sources, the Anil Ambani-firm has already placed the order for six 660 MW units, with the main plant contractor of the project, albeit, the approval of the Central Electricity Regulatory Commission (CERC), for this change in the unit size, is still pending. The developer has, also, obtained the consent of the procurers for this revision of the capacity of the project. Scheduled to be commissioned in various phases during 2013-15, the project would supply power, to the states of Maharashtra, Karnataka, Tamil Nadu and the home state of Andhra Pradesh, at a levelized tariff of Rs 2.33 per kilo-watt hour (kWh). As per the prevailing regulatory norms, RPL would be required to sign fresh power-purchase-agreements (PPAs) with the beneficiaries, subsequent to the grant of approval by the central regulator. Significantly, the company, on July 8, 2010 achieved financial closure for this Rs 17,500 crore project .

Reliance Power bagged this project back in November 2007, beating Larsen & Toubro and Sterlite Industries, in a global competitive bid. The Krishnapatnam UMPP is the second of the three UMPPs that are being developed by the Anil Ambani group.