The Union government has termed it the next "red hot zone", with a concentration of thermal power projects, like at Korba in Chhattisgarh.
The development of Krishnapatnam port has dramatically changed the area as an ideal location for power projects, Chairman and Managing Director of the Andhra Pradesh Industrial Infrastructure Corporation BP Acharya said, adding the port would be inaugurated next month.
Acharya says the total capacity of the proposed projects at Krishnapatnam is 9,740 Mw. This is equivalent to nearly 90 per cent of the state's existing capacity of about 11,000 Mw.
Krishnapatnam port is being developed in two phases. The first phase, involving an investment of Rs 900 crore, is ready for inauguration next month. It will have cargo handling capacity of 17.5 million tonnes (mt) per annum.
The power projects coming up at Krishnapatnam include the 4,000-Mw ultra mega power project (UMPP), a 1,980-Mw plant by Krishnapatnam Power Corporation Ltd, two thermal power units of Andhra Pradesh Generation Corporation (APGenco) of 800 Mw each, two 540-Mw projects of Simhapuri Energy Pvt Ltd, among others.
Sources say the project of Simhapuri Energy, a joint venture between Malaxmi Energy Ventures (India) Pvt Ltd and Madhucon Projects Ltd, will be the first one to take off. The Rs 2,633-crore project has achieved financial closure and its construction will start next month.
The project is expected to be operational by 2010. APGenco has also stated that its Rs 8,400-crore, two 800-Mw units are likely to be commissioned by 2011.
The construction of the Hyderabad-based Meenakshi group's power project is expected to begin in July 2009 and completed by December 2010. The APIIC has allotted over 2,500 acres for setting up these projects.
Anil Ambani-promoted Reliance Power Ltd, which is executing the Rs 16,000-crore Krishnapatnam UMPP, has acquired 2,600 acres for the main plant, the ash dyke and the township. Reports say the company is expected to achieve financial closure by the end of the current fiscal and the project is likely to go on stream by 2013.
