9:14 AM
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RPower halts work on mega AP project
Reliance Power-arm- Coastal Andhra Power Ltd (CAPL), has stopped work at its Krishnapatnam Ultra Mega Power Project on account ofsteep rise in the cost of Indonesian coal that the project is to run on. CAPL claims that the new Indonesian Coal Price Regulation will pushup the coal cost because of which the company would not be able to meet the conditions set by the lenders. Rpower defended its stand forstopping the work by stating that rise in coal prices has affected its ability to meet the project cash flow requirements. I believe this isnegative news for Rpower in the short to medium term.