New Delhi: Reliance Power today received the contract for setting up the 4,000 MW Krishnapatnam ultra mega power project, which its Chairman Anil Ambani says would make the group by far the largest private power producer.

With a bid of Rs 2.33 per unit, Reliance beat Larsen and Toubro and Sterlite Industries for the project. Coastal Andhra Power (CAPL), the special purpose vehicle formed by Power Finance Corp, awarded the Letter of Intent to Reliance Power.

"We will import 14-17 million tons of coal a year for the project depending upon the quality available," Reliance Energy Director (Business Development) J P Chalasani told reporters.

The estimated investment required for the project in Andhra Pradesh would be around Rs 16,000-17,000 crore, he said. "Financing for ultra mega power projects, which are based on a good structure, should not be a problem for us," Chalasani said.

Shares of Reliance Energy, which holds 51 per cent in Reliance Power, were trading at Rs 1,738 each, up 4.47 per cent on the Bombay Stock Exchange at 1335 hrs.

"This (LoI) will rank Reliance Power as by far the largest private sector generator of power in this country," company Chairman Anil D Ambani said in a statement.

First unit of the 5x800 MW Krishnapatnam project would be commissioned within 68 months from the date of transfer of CAPL to Reliance Power. The other four units would come up within a period of 93 months.

"It is likely that CAPL will be transferred within a period of 60 days, that is on January 30,2008," CAPL Chairman Satnam Singh said.

Source : PTI