On track to achieve 5000MW target by Dec 2012: RPower

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On track to achieve 5000MW target by Dec 2012: RPower

JP Chalasani, chief executive officer of Reliance Power said, the plant load factor (PLF) of its Rosa power was 76% and it generated one billion units in this quarter.

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JP Chalasani, chief executive officer of Reliance Power said, the plant load factor (PLF) of Rosa I was 76%. It generated one billion units in this quarter.

"For the first nine months, the plant got us an availability of 85% and load factor about 80%. So, operational performance wise it has been one of the best performing plants in the country," he told CNBC-TV18.

Anil Ambani led, RPower's Q3 net profit rose to Rs 204 crore against Rs 144 crore, year-on-year (Y-o-Y). Net sales stood at Rs 457 crore versus Rs 251 crore, Y-o-Y. 

By FY12 end, RPower's total capacity is expected to be around 2,500-3,000 megawatts. "We are well on track to achieve 5,000 megawatts target by December 2012," he added.

Also Read: RCom plans to end Q4 with a bang; double revenues in 3-yr

Below is the edited transcript of Chalasani's interview with CNBC-TV18. Also watch the accompanying video.

Q: Could you give us an update on Rosa - how it did during the current quarter and with some special reference to Rosa II which was commissioned fag end of last year?

A: Rosa I 600 megawatts of Rosa continue to operate at very high levels of performance. This quarter we generated close to a billion units, which is achieved a plant road factor (PLF) at about 76% and availability of about 80%. For the first nine months, the plant got us an availability of 85% and load factor about 80%. So, operational performance wise it has been one of the best performing plants in the country.

On the financial performance side, the operating revenue from power generating assets which is purely Rosa, has gone up above 80% compared to the same quarter the previous year on this. The profit is Rs 75 crore compared to Rs 40 crore last year. On the financial performance side, it has done exceedingly well by improving the profits from an improvement in terms of coal consumption, in terms of operational maintenance cost and various other aspects.

Coming to the second 600 megawatt of Rosa, the third 300 megawatt unit has been commissioned towards end of December, which was about three months ahead of schedule. We have not just commissioned, but we did coal firing on the same day. We took it to the full load and also completed the entire trial operation in a period of seven days which shows the preparedness of the unit of this.

The last unit which completes the Rosa the entire 1,200 megawatt is now under commissioning. It is expected to be commissioned before end of March. So, that completes the entire 1,200 megawatt of Rosa which will be available for operation at the full capacity for the next financial year.

Q: We believe that Samalkot as well will be commissioned by March 2012 - once both of these projects are on road are you on target to reach the 5,000 megawatt you had indicated you hit by December 2012 or do you think you could outreach that target?

A: Right now I would like to maintain that we would definitely reach 5000MW by December 2012. God's grace if everything goes well we would will be able to outreach the target. The 1200MW of Rosa is getting completed and the Butibori, which is the second coal based project which will come on stream would also start producing power by end of this year. The cost unit would be commissioned by March, which is a quarter ahead of schedule. The second unit will also come by June, so that completes the entire Butibori capacity of 600MW by June.

Coming to Samalkot, is a pride for us. it is about 14-15MW and we made them ready for producing power within a short span of 15 months from the time we signed the contract to GE. That to our knowledge is a record anywhere in the world. By the end of this financial year, depending upon when we get the commissioning gas, we should be anywhere between 2,500-3,000MW. By end of the year, we will achieve our guidance of 5,000 megawatt.

Q: Some of your peers have faced a lot of difficulty in terms of sourcing coal from Indonesian mines - your confident things are on track for FY13 there will be no escalation in terms of your input cost because of the problems in Indonesia?

A: Rosa 1,200MW is a cost-plus PPA with EPPCL. In this quarter, we consumed two third of domestic coal and one third of imported coal on this. We have permissions from the off taker to procure coal outside the linkage, if the linkage is shortage and keep running the plant at full capacity. We have not faced coal shortage in the first nine months. We have adequate stock and have permissions to import coal if necessary for the next quarter as well.

Therefore, Rosa would not have any issue with respect to this year and we are expecting the same for the next year. As far as the price is concerned, for Rosa 1200MW we are expecting linkage coal performance to improve significantly in FY13, which means domestic coal supply will increase. Imported coal component would come down in the blended one. As far as Rosa is concerned,it is a cost-plus so the blended cost of coal would be a passed through. So, there wouldn't be an impact on the P&L of Rosa power plant on this.