Rosa Thermal Power Project

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The Rosa Power Project Phase I was a 600 MW (2 units of 300 MW each) coal based power plant located in Shahjahanpur district in the state of Uttar Pradesh. 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. The cost of Rosa Power Project phase I was estimated at US $ 675.5 Million. In June 2007, this phase reached financial closure with a syndicated loan for which IDBI bank was the lead arranger and provided a US $ 125 million term loan. The other banks which contributed in the syndicate were UTI Bank (US $ 54.25 million), IIFCL (US $ 116.25 million), Canara Bank (US $ 50 million), Syndicate Bank (US $ 50 million), Vijaya Bank (US $ 50 million), United Bank (US $ 50 million), and SIDBI (US $ 25 million). The debt/equity ratio of the project was 80:20, which was expected to be maintained in latter phases also. Construction of Phase-I started in March 2007 and was scheduled to conclude in 2010. The first 300 MW unit of Phase I was commissioned in December 2009, and the second 300 MW unit of this phase in June 2010. Reliance Power Limited planned a second phase for this project which consisted of additional two coal fired units of 300 MW each which would use subcritical technology. In 2006, the state government of Uttar Pradesh granted approval for the second phase subject to the condition that phase I was implemented in accordance with the timeframe indicated by the state Electricity Regulatory Commission in Uttar Pradesh. According to such timeframe, the two 300 units of phase I must be commissioned by 2010. For phase II, the first 300 MW was scheduled to be on-stream by June 2010 and the second 300 MW unit in September 2010. Details of investment in Phase II and financial closure need to be added as and when financial closure of Phase II takes place