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Reliance Power to go in for $6 b syndicated loan

NEW DELHI: The Anil Dhirubhai Ambani’s Reliance Power Limited will set up 12 new power projects with a total capacity of 24,200 MW, including the 4,000 MW Sasan Ultra Mega Power Project (UMPP), by raising around Rs. 76,473 crore from financial institutions, banks and the stock market.

The company is learnt to have already approached three banks to arrange for $6 billion (Rs. 24,000 crore) of secured syndicated loan. Macquarie India Advisory Services, ABN Amro Bank and Deutsche Bank have been asked to arrange syndicated loans of $2 billion each. Reliance Power, seeking to raise about Rs. 12,000 crore from the market, will be one of the biggest IPOs to hit the markets, surpassing the Rs. 9,200 crore IPO of real estate developer DLF.

Among the major projects, Reliance Power will develop an UMPP at Sasan in Madhya Pradesh for which coal linkages and land have already been allotted.

The 4,000-MW project is expected to be the largest pit-head coal-fired power project at a single location in the country and is scheduled to be commissioned during the XI Plan. At the same time, the company expects to complete the Rosa Phase-I, 600-MW coal-fired project in Uttar Pradesh, now under construction, by March 2010. The Rosa Phase II (600-MW expansion project) is scheduled to be commissioned by September 2010.

The other identified projects are located in Western Region (12,220 MW), Northern region (9,080 MW) and North-Eastern region (2,900 MW). It is also making a big foray into the hydro power projects in Arunachal Pradesh.

The power projects include six coal-fired projects (10,620 MW) to be fuelled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fuelled primarily by reserves from the Krishna Godavari Basin off the East Coast and four hydro power projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand.

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