Mumbai (Maharashtra) [India], March 4 (ANI): Reliance Power and JERA Co Inc, which are developing a new gas-fired power generation project in Bangladesh, have achieved financial closure with a group of lenders that includes Japan Bank for International Cooperation and Asian Development Bank.
All requisite conditions for availing drawdown under the loan agreements have been satisfied, the Anil Ambani-controlled company said in a statement on Thursday.
The project is to build, own and operate a 745 megawatt natural gas combined-cycle power project at Meghnaghat in Narayanganj, about 40 km southeast of Dhaka.
Reliance Power's wholly-owned subsidiary Samalkot Power Ltd has received the approval from Export Import Bank of the United States to sell one module of equipment to Samsung CT Corporation of South Korea, which is the engineering, procurement and construction (EPC) contractor for project for Rs 1,540 crore.
The notice to proceed has been issued by project company to Samsung CT, which in turn has issued the notice to proceed to Samalkot Power for supply of equipment.
Samalkot Power will supply one module of world-class equipment procured from internationally reputed original equipment manufacturers to the phase one project in Bangladesh.
Reliance Power's networth is Rs 12,063 crore and debt to equity ratio is 2.24:1, which is among the lowest in industry. The company said it will achieve a total debt reduction of up to Rs 3,000 crore by March.
Reliance Power, a part of the Reliance Group, is a leading private sector power generation and coal resources company. It has one of the largest portfolios of power projects in private sector based on coal, gas and renewable energy with an operating portfolio of 5,945 megawatts. (ANI)