Phase-II of R-Power’s Rosa Project gets funds

Author: MP Rana

A consortium of domestic Banks, led by IDBI helped Reliance Power procure funds for the second phase of Rosa project. This tying-up is for the sake of 600MW power plant that will be built in Shahjahanpur district of UP. Out of the total requirement of Rs.2,702 crore,
Rs.702 crore will be via equity, the rest Rs.2,000 crore will come from the consortium.

Among the consortium’s contributors, Rs.500 crore will be provided by IDBI and IIFCL (India Infrastructure Finance Company) will provide Rs.465 crore. Syndicate Bank, United Bank of India and Canara Bank will pour in Rs.200 crore each. SIDBI (Small Industries Development Bank of India) has promised to give Rs.100 crore and LIC’s contribution is expected to be Rs.80 crore.

The coal based power plant at Rosa is being built by RSPCL (Rosa Power Supply Company) which
is a wholly owned subsidiary of Reliance Power. Second Phase of this project is estimated to get completed by starting of 2010 with the commissioning of first phase to get over bysecond quarter of 2009. The company has got all the clearances from the Government and will soon be entering into coal transportation agreement with Indian Railways. Also, an application to obtain coal linkages has been submitted to the Ministry of Coal.