In a significant development today, Andhra Pradesh signed a reform-linked memorandum of agreement (MoA) with the financial institutions led by the Industrial Development Bank of India (IDBI) to pump in Rs 10,000 crore investment in six private sector power projects with over 2,300 mw capacity, in the state.
The MoA, first of its kind, will allow the financial closure of the five gas-based projects and one coal-based project without any escrow cover. Union power secretary AK Basu told reporters that the gas-based projects in the state will offer a tariff of Rs 1.80 per unit, one of the cheapest in the country.
Basu added that the MoA was subject to the IDBI board
