Reliance Power to reduce US EXIM Bank debt of Rs 1500 Cr: Sources
Reliance Power is expected to reduce another burden of Rs 1500 Cr by July end. As per sources export of equipment from Reliance Power’s Samalkot project are underway and the transplant is expected to be completed by end of July 2021. The company has sold the Module 1 equipment to the gas-based project jointly being developed by it along with JERA of Japan in Bangladesh
Reliance Power is expected to reduce another burden of Rs 1500 Cr by July end. As per sources export of equipment from Reliance Power’s Samalkot project are underway and the transplant is expected to be completed by end of July 2021. The company has sold the Module 1 equipment to the gas-based project jointly being developed by it along with JERA of Japan in Bangladesh. The gas-based project jointly developed by JERA of Japan and Reliance Power in Bangladesh has achieved a financial closure for first phase of 750 MW generation capacity. The project is being set up by the company at Meghnaghat in Bangladesh.
As per sources aware of the development, the transplant of Module 1 equipment is currently underway and is expected to be completed by end of July 2021 will result in a massive reduction in the US-EXIM net debt of nearly Rs. 1,500 Cr for Reliance Power.
See Zee Business Live TV Streaming Below:
Cyclone Michaung update: IMD forecast offers some respite for Chennai with predictions of light rainfall
Share Market Today LIVE: MARKET AT ALL-TIME HIGH | Nifty scales fresh peak of 20,813.1; Sensex at 69,306.97; Nifty Bank at 46,933.15
HCL Tech, Patanjali Foods, Garden Reach Shipbuilders, Gabriel India: Stocks to watch out for on Tuesday
Samalkot Power Limited, a wholly owned subsidiary of Reliance Power has received the approval from the Export Import Bank of the United States ("US Exim Bank") to sell one module of equipment (Module 1) to Samsung C&T Corporation of South Korea, for Rs. 1,540 Crore.
Samsung C&T Corporation is the EPC contractor for the new gas-fired power generation project in Bangladesh being developed by Reliance Power Limited and JERA Co. Inc., through their joint venture project company.
Reliance Power had entered into a debt restructuring agreement with US-Exim in June 2019 for its Samalkot Project debt of Rs 2,430 crore. The US-Exim has agreed to converting amortizing repayment schedule into bullet repayments and extended the final loan maturity to June 2022. It has also lowered the interest rate to 2.65% per annum.
All the power plants of Reliance Power remained fully operational despite facing Covid-19 and lockdown challenges. R-Power has operating portfolio of around 6000 MW and is one of the 3 top power generators in India.
The total debt for the Samalkot project is Rs 2,500 crore out of which Rs 1,500 crore will be cut down with the sale of Module1. As per sources the sale of the remaining 2 modules is expected to generate sufficient funds for wiping out the remaining debt of Rs1,000 and also providing the company with additional funds.
The Module 2 and 3 sales being pursued jointly with US-EXIM and will generate surplus for Reliance Power after paying off balance US-EXIM debt.