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BPL among 5 AP power projects to achieve fin closure

Syed Amin Jafri in Hyderabad

The BPL Power Project is among the five independent power projects in Andhra Pradesh cleared by the crisis resolution group of the Indian government, paving the way for their financial closure.

Speaking to newsmen in Hyderabad on Friday, Power Minister Suresh Prabhu said that the crisis resolution group, chaired by him, has already cleared these five projects and these would achieve financial closure soon.

The projects are: BPL, Ramagundam (coal-based project of 520 MW capacity), Konaseema Oakwell (445 MW), Gautami-NCC (464 MW), Vemagiri Ispat (370 MW) and GVK Jegurupadu Phase-II (220 MW) (all gas-based).

Another gas-based project-- BSES-- with capacity of 220 MW-- is also ready for financial closure.

The Andhra Pradesh government, A P Transco, Power Finance Corporation, financial institutions and banks would be entering into memoranda of agreement for financial closure of these projects later this month.

The power minister also disclosed that the Indian government was trying to set benchmarks for average capital cost of power projects in the country so as to make tariff the principal criterion for all new projects.

Prabhu said that the NTPC has invited bids for a project, which uses the latest supercritical technology. It was expected that the bids would be lower than the projected cost of the project, considering the cost of the latest project that has gone on stream.

He refused to give details but it is understood that the NTPC project is the 500-MW extension project at NTPC Ramagundam.

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