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Monday, April 21, 2008

R-ADAG puts Rosa project on fast track

NEW DELHI: Reliance Anil Dhirubhai Ambani Group (R-ADAG) promoted
1,200 mw Rosa power project in Shahjahanpur district, Uttar Pradesh,
is slated to be completed by the beginning of 2010, nine months ahead
of schedule.

According to sources, construction is going on extensively and the
first phase of the project is all set to commence operation in the
second quarter of 2009, while work on the second phase is expected to
be completed in early 2010.

"We have put the Rosa project on fast track. We expect work to be
competed by early 2010," an official source said. However, the
Reliance Power spokesperson could not confirm advancement of
commissioning schedule of the project.

While construction on stage I has gathered speed, EPC contract has
been awarded for stage II to a consortium led by Shanghai Electric,
China. The company is also the EPC contractor for the first phase of
the project. It is expected that half of the power generated from the
project would meet the requirements of UP.

The remaining would feed the neighbouring states. Reliance Power has
already signed a PPA with Uttar Pradesh Power for selling half of the
generation in the first phase project. Reliance Power's Rs 5,000 crore
coal-based power project is being developed in two stages of 600 mw
each.

The first phase of the project costing Rs 2,641 crore has already
achieved financial closure. The company has tied up loans of Rs 2,162
crore that represents 80% of the project cost of the stage one 600 mw
plant capacity.

The company has obtained all statutory and regulatory clearances.
Land, water and coal have already been arranged. During the first
stage, the project will supply entire 600 mw to distribution companies
in Uttar Pradesh for which a power purchase agreement has been
signed.

"The project will bring some relief to UP which has been suffering
from power crisis for long," said a power ministry official. Stage II
of the project is also in advanced stage as statutory approvals from
various authorities like Airport Authority of India and Air Head
Quarters have already been obtained.


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