Reliance Power has started the export of power equipments to its Bangladesh Power project.
These equipment are being exported from its Samalkot project. The process of exporting the equipment for 750 MW LNG based power project in Bangladesh is expected to be completed by end of July 2021.
According to a senior company official, the sale of these equipment from Samalkot to Bangladesh project will bring down Reliance Power’s US-EXIM debt by nearly Rs 1,500 crore.
Reliance Power has sold the Module 1 of the gas based power equipment, which has a capacity of 750 MW, to the Bangladesh project.
The Bangladesh project is jointly developed by it along with JERA of Japan. The project has also achieved a financial closure for its first phase of 750 MW generation capacity. Samsung C&T Corporation is the EPC contractor for the Bangladesh project.
Reliance Power had imported 3 modules of gas-based power equipment for its Samalkot project, but the project could not take shape due to the unavailability of gas in the country. Now the company is using these power equipment for its Bangladesh project. The process of exporting the Module 1 of 750 MW is underway and will be completed by July end.
The total US Exim debt for the Samalkot project is around Rs 2,500 crore, out of which Rs 1,500 crore will be repaid with the sale of Module 1. The sale of the remaining 2 modules is expected to generate sufficient funds for wiping out the remaining debt of ~Rs 1,000 crore, and also providing the company with additional funds.
The sale of Module 2 and 3 is being pursued jointly with US-EXIM and will generate surplus for Reliance Power after paying off balance US-EXIM debt.
Reliance Power had entered into a debt restructuring agreement with US-Exim in June 2019 for its debt of Rs 2,430 crore. The US-Exim had agreed to converting amortizing repayment schedule into bullet repayments and extended the final loan maturity to June 2022. It had also lowered the interest rate to 2.65 per cent per annum.
All the power plants of Reliance Power remained fully operational despite facing Covid-19 and lockdown challenges. R-Power continues to be one of India’s top 3 private power generation companies with operating portfolio of around 6000 MW.