In what may be seen as a major boost for the power sector in AP, chief minister N Chandrababu Naidu has reportedly convinced Japanese electricity major Sumitomo Corporation to share its one of its kind ultra-super critical technology.
This is for establishing a 4,000 MW thermal power plant in the state. AP energy officials have stated that the technology with Sumitomo is very high in demand and the company has also agreed to share this and prepare a Detailed Project Report (DPR).
It would be including funding from the Japan International Cooperation Agency (JICA). The AP government has reportedly identified Srikakulam district, where the government land is abundant, for establishing this project, which is estimated to cost nearly Rs 20,000 crore.
JICA would be providing AP with the loan at 0.3 per cent interest rate payable for 40 years which is considered as a jackpot for Andhra Pradesh in terms of electricity agreements. If this project goes as planned then Andhra Pradesh would not have to depend on any external sources for power.
