Coastal Andhra Power Limited (CAPL)

Coastal Andhra Power Limited (CAPL) was incorporated on August 24, 2006. This company was incorporated as a wholly owned subsidiary of Power Finance Corporation Limited in order to build, own, operate and maintain the Krishnapatnam Ultra Mega Power Project at Nellore District in Andhra Pradesh and to invite international competitive bidding so as to award the Project to the successful bidder. It was transferred to Reliance Power under the provisions of a share purchase agreement dated January 29, 2008 after Reliance Power won the International Competitive Bidding (ICB) conducted for CAPL.

As per the ICB guidelines, a Power Purchase Agreement (PPA) has been executed with 11 Procurers comprising 4 States i.e. Andhra Pradesh, Tamil Nadu, Karnataka & Maharashtra. Andhra Pradesh, the Lead Procurer, will have 40% share of power from the project and the other states 20% each.

Coastal Andhra Power Limited (CAPL), a wholly owned subsidiary of Reliance Power Ltd. is currently developing a 4,000 MW coal-based UMPP to be located near Krishnapatnam, Andhra Pradesh.  The Krishnapatnam project, which was awarded to Reliance Power Ltd. following an international competitive bidding process, is located approximately 3 km from the nearest port where imported coal will be delivered to supply fuel for the project.

The Krishnapatnam project will be a coal-based project and will employ super-critical technology.  The project is scheduled to come on-stream by September 2013, when the first unit is commissioned and the project is scheduled to be fully commissioned by October 2015.

Coal is planned to be imported from Indonesia. Construction activities at the site have commenced. All key clearances and approvals required for the Project are in place. All the required site studies have been completed.

The company is now focusing on early financial closure.  IDBI and Power Finance Corporation (PFC) have been appointed as the co-lead arrangers for the Project and have also sanctioned Rupee Loans.