RPower seeks permission to exit the 4,000 MW Krishnapatnam UMPP in Andhra Pradesh

Reliance Power Limited (RPower) has written to the Andhra Pradesh government seeking to exit the 4,000 MW Krishnapatnam ultra mega power project (UMPP). RPower stated that the project cannot be taken forward owing to cost escalation of coal imported from Indonesia, among other factors. In 2011, RPower had initiated the renegotiation of power purchase agreements (PPAs) following changes in mining regulations in Indonesia; however, this could not be implemented. RPower had bagged the Rs 175 billion project in 2007 quoting a tariff of Rs 2.33 per unit for a 25-year period.