Sasan (Madhya Pradesh): Reliance Power said on Wednesday it would commission the first unit of its 3,960 MW-Sasan Ultra Mega Power Project in January 2013. The first unit of 660 MW of the Sasan project in Madhya Pradesh would be coming up ahead of its Power Purchase Agreement (PPA) schedule.

"We are happy with the rapid progress being achieved at the site and are confident of bringing the project much ahead of original PPA schedule with the first unit starting in Jan
2013," Reliance Power CEO J P Chalasani said.

"Sasan, with its landmark tariff of Rs 1.19 per Kwh, will benefit power consumers in seven states due to its early commissioning," he added.

As per the PPA agreement, the first unit was to be ready by May 2013. According to the company, the six units of 660 MW each would be commissioned by June 2014.

Sasan project is estimated to cost around USD 4.3 billion, with financing by an equity contribution of USD 1.2 billion and term loans to the tune of USD 3.1 billion.

The project has received final commitments for term loans of more than USD 1.1 billion from Chinese banks.

"Sasan's financing is unique with both US Exim Bank and Chinese Banks joining the Indian lenders for financing the Project. The financing not only ensures competitive rates, but also helps in reducing foreign exchange risks and equipment performance risks," Chalasani said.

Based on super-critical technology, Sasan UMPP is a pit head coal-fired power plant and the company has entered into a 25-year PPA with off takers of power for the entire 3,9602 MW

Power generated from Sasan would be supplied to seven states -- Madhya Pradesh, Punjab, Uttar Pradesh, Delhi, Haryana, Rajasthan and Uttarakhand.