Reliance Power Investing $3.25 Billion in Generation, Coal Mining Equipment

---

Researched by Industrial Info Resources (Sugar Land, Texas) -- India's Reliance Power (Bombay) is making major investments into the procurement of power generation equipment for new power stations and for mining equipment to provide the coal feed for the power units. It is reported that bidders for the power equipment contract decision will not have to wait later than mid-April for the decision which has been delayed a number of times by regulatory changes and the allocation of coal reserves to make the power projects viable.

The $2.5 billion order will cover 12 boilers, turbines and generators for the $4.5 billion, 4,000 MW Ultra Mega Power Projects (UMPPS) at Sasan Madhya Pradesh and Krishnapatanam in Andrha Pradesh. The orders will cover the 8,000 MW (12 x 660 MW) of combined power total for the two power stations. The six companies that have been bidding for the contract are Ansaldo (Italy), Doosan (South Korea) , Toshiba (Japan), Shanghai Electric (China) Ha4rbin (China) and Power machines (Russia).

The company winning the bid could gain an inside track for the total of 28,000 MW of power projects (seven coal-fired) that Reliance Power claims to be developing currently. The company is also in talks with major players in the global power market to form strategic relationships and joint ventures for equipment supplies and technology exchanges. The size of the orders being placed is said to exceed the current annual equipment manufacturing capacity of the state owned Bharat Heavy Electrical (BHEL).

Reliance Power is also investing $750 million over the next three years to develop coal mines to provide a fuel feed for the Sasan project. A plan for pit-head mines will be developed in a strategic partnership with the North American Coal Corporation (NACC). The U.S. company will provide technical assistance including evaluation of geological data, mine planning and design, supervision of mining operations and training of the Indian company's professional staff under an MoU (memorandum of understanding) between the two companies.

Orders have also been placed with US and European companies for coal handling equipment to handle the 15 million tons of coal required annually by the Sasan project. Reliance Power is hoping to finalize state coal allocations and fast track the Sasan project to beat the current schedule which sets April 2016 as the date for the project to be fully commissioned. The company can call on coal reserves of about one billion tons at home and abroad. It is currently adding to that total with acquisitions overseas and new allocations at home.

View Project Report - 89000972 89000873 89001116

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.