Krishnapatnam Power Project

Krishnapatnam Power Project was bagged by Reliance Power Limited in 2007. The project involves the building, operating and maintenance of this 4000MW power generation plant designed to generate power from imported coal.

Plan of the Krishnapatnam Power Project

The Krishnapatnam Power Project is one of the couple of coal based power plants with a 4000 MW capacity that were to be set up in Krishnapatnam within the Nellore District. The larger picture involves the setting up of similar plants in six different regions of the country. The project was intended to be user friendly. The rates were to be kept within the reach of the mass even though the cost of using imported coal involved substantial expenditure.

Reliance bags Krishnapatnam Power Project

The Krishnapatnam Power Project in Nellore District involved a total cost of Rs 16000 crore. The bids for the final contract were initiated by the power finance Corporation which was primarily responsible for the UMPPs bids. The bid for the prestigious Krishnapatnam Power Project was won by Reliance Power IPO in 2007. The tender submitted by the Reliance Power Limited (RPL) managed by Anil Ambani had the lowest bid in comparison to other investors such as Sterlite and L&T. The bid made by RPL involved the lowest cost and the rates were fixed at Rs 2.33 per unit.

The initial response after the opening up of the bids was bleak as the project involved substantial expenditure. Several of the big corporate houses chose not to participate in the bidding. The undertaking involved the building, functioning and upkeep of the Krishnapatnam Power project. The plant will make use of the latest technology and thrive on imported coal for its sustenance. The states of Tamil Nadu, Andhra Pradesh, Maharashtra and Karnataka are supposed to off take power from the Krishnapatnam Power Project.

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