The truncated state of Andhra Pradesh is riding high with the investors, across the globe, queuing up. In a major boost to AP’s power sector, Japan’s major power firm Sumitomo Corporation has confirmed to set up a 4000 MW thermal power plant in AP. This is not all. It’s going to share its ultra-supercritical technology with AP and also ensured funding from the Japan International Cooperation Agency (JICA).
According to media reports, JICA is going to give a loan at as less as 0.3 per cent where AP has to repay it in a span of 40 years. Besides this, Sumitomo also agreed to provide Detailed Project Report (DPR). Although everything is in place, AP hasn’t confirmed the deal yet and asked the company to participate in its tender process as Naidu insisted that government can’t “break” its own rules. He made it categorically, “Only the company that quotes the best bid will get the project.
There is no question of deviating from the tender process,” said a top official in Naidu’s team. On other hand, another Japan firm Fuji Electric has agreed to send its expert team to carry out a feasibility study for a smart-grid project in AP. This is expected to help AP government in estimating the future needs as it’s going to develop 14 smart cities and 3 mega cities. On whole, Naidu’s Japan trip is reaping fruits for the new state.