Mumbai, Sept. 28: Reliance Power Ltd (RPower) will invest Rs 80,000 crore in its thermal power operations and hopes to crank up its generation capacity to 25,000 mega watt (MW) by 2015.
The Anil Ambani group company has also drawn up plans that will make it the countrys largest private sector thermal power and hydro power company. The company plans to invest another Rs 30,000 crore in hydro power projects.
RPower chairman Anil Ambani told shareholders of the company here today that in the next 24 months the company would raise its generating capacity to 5,000MW from 600MW.
This pace will intensify even further in 2013. Over the following three years, we will add, on an average, 7,000MW of thermal power capacity every single year. In other words, we plan to grow our capacity by 2015 from the current 600MW to 40 times that number or nearly 25,000MW, he said.
With the cost of generating one mega watt of electricity put at around Rs 4 crore, it is estimated that the total investment by RPower in generating over 20,000MW will be above Rs 80,000 crore.
Ambani said the company had achieved financial closure for 10,000MW of power. This funding, which includes two of the worlds largest power projects the 4,000MW Sasan and the 4,000MW Krishnapatnam project, has been done on a project finance basis. At Rs 50,000 crore, this is the largest ever fund-raising exercise in the history of India, he said.
The RPower chairman said the company had also sufficient feedstock to support plans in thermal power generation. The company now has coal reserves of over 2 billion tonnes in Madhya Pradesh and Jharkhand, which can potentially support the generation of 20,000MW of power every year for 25 years.
Indonesia coal reserve
RPower also has access to nearly 2 billion tonnes of coal resources in Indonesia, which is envisaged to generate up to 10,000MW per year for 25 years.
The development of our reserves will give us the capacity to mine up to 100 million tonnes per annum, making us the largest private producer of coal in India. Together, our domestic and overseas reserves will yield enough coal to fire 30,000MW of power for 25 years, he said.
RPower also has the potential to add another 2,000MW through gas generated from coal-bed methane, or CBM blocks, acquired from RNRL in Andhra Pradesh, Madhya Pradesh and Rajasthan.