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BHEL to help Reliance Power

NEW DELHI: Faced with numerous problems, including clearances and fuel linkages for its mega power projects, Anil Ambani-owned Reliance Power has agreed to join hands with Bharat Heavy Electricals Ltd. (BHEL) to executed the 4,000 MW Krishnapatnam Ultra Mega Power Project in Andhra Pradesh.

“Representatives of Reliance Power led by its CEO J. P. Chalsani have met me last week. They have expressed their interest in joining hands with BHEL for the engineering, construction and procurement (EPC) works for the Rs. 17,000-crore project. A formal agreement on the issue is likely to be signed within few weeks,” Union Minister of State for Power Jairam Ramesh said.

Mr. Ramesh said officials of BHEL and Reliance Power were holding discussions to sort out the nitty-gritty pertaining to EPC works and their execution and hopefully the venture would take off shortly.

He said that it was important that state utilities like BHEL should be strengthened and private and public sectors should depend less on imports, especially from Chinese firms, for their power equipment needs. Reliance Power had bagged the 4,000-MW Krishnapatnam Ultra Mega Power Project with a bid of Rs. 2.33 a unit.

The Coastal Andhra Power, the special purpose vehicle formed by Power Finance Corporation (the nodal agency for the UMPP programme) would execute the project.

The first unit of the 5 x 800-MW Krishnapatnam project is expected to be commissioned within 68 months. The other four units would come up within 93 months. The company has already signed power purchase agreements with Andhra Pradesh, Maharashtra, Tamil Nadu and Karnataka for supplying power from the Krishnapatnam project for 25 years. Andhra Pradesh will receive 1,600 MW, while Maharashtra, Tamil Nadu and Karnataka will offtake 800 MW each from the project.

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