Rosa Thermal Power Project Phase - II

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In January 2007, Reliance Power signed a contract for development of 1,200 MW coal based power plant in two phases at Rosa Village of Shahjahanpur in Uttar Pradesh. Each phase comprised of 2x300MW coal-fired power plants. Phase I reached financial closured in June 2007 while phase II did so in October 2008. In November 2006, Reliance Power Limited (RPL), a subsidiary of Reliance ADA Group, signed a Power Purchase Agreement (PPA) to sell the entire electricity output from Rosa Power Project phase I to UP Power Corporation Ltd (UPPCL), the state-owned entity responsible for bulk power procurement for the state of Uttar Pradesh. The term of the PPA was 25 years from the commissioning of the project, which could be extended by mutual agreement between RPL and UPPCL. Upon expiration of the PPA, RPL was free to sell the power generated to a third party. Reliance Power Limited acquired the rights to developed Rosa Power Project Phase I from Aditya Birla Group in November 2006. The Rosa Power Project was initially developed as two units of coal-fired 283.50 MW plants, by a joint venture between AV Birla Group (51%) and PowerGen of UK (49%) in the early 1990s. The Rosa Power Supply Company Limited (RPSCL), a subsidiary of RPL, was created to implement the project. RPSCL signed the coal contract supply with the railways and Central Coalfields. The coal supply was to come from North Karanpura coalfields in Jharkhand state. Phase II of the project achieved its financial closure in October 2008 with a debt equity ratio of 72:28. The project was expected to cost approximately USD 585 million. RPSCL financed this project through an equity contribution of USD 164 million and a loan of USD 421 million. Reliance Power tied up with the IDBI Bank-led consortium of domestic banks to secure the debt portion for the Phase II of the project in October 2008. While IDBI agreed to fund USD 120 million, India Infrastructure Finance Co Ltd. (IIFCL) offerred USD 110 million. Canara Bank, Syndicate Bank and United Bank of India were to provide USD 50 million each. The Small Industries Development Bank of India and the Life Insurance Corporation of India offered USD 23 million and USD 18 million respectively, while Axis Bank offerred a foreign currency loan of USD 50 million. Phase II was scheduled to commence power generation within the 11th plan (i.e. by March 2012)