R-ADAG's 1,200-Megawatt Rosa Power Plant Six Months Ahead of Schedule

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Reliance Anil Dhirubhai Ambani Group (R-ADAG) (Mumbai) is planning to commission the first phase of a 1,200-megawatt (MW) power plant in Rosa, Uttar Pradesh, six months ahead of schedule. The $1 billion plant is about 100 miles from the state capital of Lucknow. Commercial generation from Phase I is slated to begin by September 2009.

Phase I will provide electricity to the neighboring villages and for consumption in Uttar Pradesh. The project, one of the biggest infrastructure investments in the state, has inked a purchase agreement with the Uttar Pradesh State Electricity Board, according to which the power generated in the plant will be supplied to the board to meet the state's electricity demand. Currently, only about 56% of the villages in the state have electricity. The Rosa project will aid in increasing rural electrification, which in turn will boost agriculture in the region. Villagers will be able to power their pump sets for irrigation once the plant is commissioned. Power generated in Phase II will be supplied to other states, though the exact details of power sharing have not yet been finalized.

Rosa Power Supply Company is a wholly owned subsidiary of Reliance Power Limited (BSE:532939) (Mumbai). The project is being executed under a debt-equity ratio of 80:20. IDBI Bank Limited (BSE:500116) (Mumbai), a leading Indian financial institution and world's 10th largest development bank, is the project's financial adviser. Rosa Power has signed pacts with Central Coal Fields Limited (Ranchi), a fully owned subsidiary of India's largest mining company Coal India Limited, for coal linkages, thereby securing feedstock for the project. Shanghai Electric Group Company Limited (HKG:2727) (Hong Kong), a state-owned industrial machinery technology company, will supply boilers and turbines. Rosa Power chose Shanghai Electric because of its cost-effective and competitive pricing, and immediate availability of equipment.

The Rosa project has roped in Black & Veatch Corporation (Kansas City, Missouri), a leading privately held global engineering, consulting and construction firm, to independently monitor the project's quality standards and assess its compliance.

R-ADAG is among India's top three private sector business houses with a market capitalization of $81 billion and interests ranging from communication and infrastructure to financial services and power generation. The company is in the process of executing 13 power projects across the country worth a total capacity of 28,000 MW that includes two ultra-mega-power projects (UMPP) of 4,000 MW each in Krishnapatnam, Andhra Pradesh, and Sasan, Madhya Pradesh.

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