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In June 2011, Reliance Power stopped work at its Krishnapatnam Ultra Mega Power Project, citing a hike in the cost of [[Indonesia and coal|Indonesian coal]] that the project is to run on. Reliance Power claims that the new Indonesian Coal Price Regulation will push up the coal cost, and the company will not be able to meet the conditions set by the lenders, affecting its ability to meet the project cash flow requirements. The stoppage comes even as work on the associated infrastructure for the project is ongoing, including Power Grid Corporation's transmission link (Krishnapatnam-Nellore line for start-up power) that is scheduled to come up by November 2012.<ref name=as>Anil Sasi, [http://www.thehindubusinessline.com/industry-and-economy/banking/article2211624.ece?homepage=true "RPower halts work on mega AP project citing costlier imported coal"] ''The Hindu Business Line'', ''July , 2012.</ref>
In August 2014, it was reported that Reliance Power had approached the Andhra Pradesh government with a proposal to revive the project. According to AP Southern Power Distribution Company (APSPDCL), Reliance Power had offered a compromise formula to revive the project. Under the proposal, APSPDCL would withdraw its termination notices and Reliance Power would drop the cases it had filed against APSPDCL in the Delhi High Court.<ref name=compromise>CR Sukumar, [http://articles.economictimes.indiatimes.com/2014-08-27/news/53285059_1_krishnapatnam-umpp-coastal-andhra-power-reliance-power "Reliance power approaches Andhra Pradesh government to revive Krishnapatnam UMPP,"] The Economic Times, August 27, 2014</ref>
==Project Details==
'''Projected in service:''' <br>
'''Coal Type:''' <br>
'''Coal Source:''' Indonesia<br>
'''Estimated annual CO<sub>2</sub>:''' 7,806,085 tons<ref>For estimation method, see [[Estimating carbon dioxide emissions for proposed coal plants in India]]</ref><br>
'''Source of financing:''' The Krishnapatnam power project achieved financial closure in July 2009. The lenders for the project are a consortium of 12 banks lead by IDBI Bank. The lending was done on a project finance basis for an estimated project cost of around Rs. 17,450 crs (US$ 4 billion) with a debt-equity ratio of 75:25.<ref>[http://www.reliancepower.co.in/business_areas/power_projects/coal_based_projects/krishnapatnam.htm "Krishnapatnam Ultra Mega Power Project,"] Reliance Power website, accessed February 2014</ref><br>