New Delhi: Reliance Power said on Tuesday that it is setting up a 750-MW gas-based combined cycle power project (phase-1), along with Japanese energy major JERA, at Meghnaghat in Bangladesh. Reliance will hold 51 percent stake in the joint venture company, while JERA will hold 49 percent stake, a press release said.

"Reliance Power signed a partnership agreement with JERA, one of the largest power utilities of Japan, for jointly setting up 750 MW gas-based combined cycle power project (phase-1) at Meghnaghat, Bangladesh," the statement said.

MoU signed in 2015

Reliance Power had signed a memorandum of understanding (MoU) for the project during Prime Minister Narendra Modi's visit to Bangladesh's capital Dhaka in June 2015. The overall project pertains to the setting up of a 3,000 MW gas-based combined cycle power project in phases in Bangladesh.

What does the project agreement include?

The project agreements include the Power Purchase Agreement and Land Lease Agreement with BPDB (Bangladesh Power Development Board) for the power project, Gas Supply Agreement with Titas Gas, a subsidiary of Petrobangla for the supply of gas to the power project and Implementation Agreement with Ministry of Power, Energy and Mineral Resources.

The project will be set up within 36 months of signing the agreements, the release said.

'Excited to be part of Bangladesh's growth story'

"This joint venture project will give a tremendous boost to the economic and industrial growth of Bangladesh and will enhance the energy security of the country with clean, green and reliable LNG based power. We are excited to be part of the growth story of Bangladesh in partnership with JERA," Reliance Group of Companies Chairman Anil Ambani said in the statement,

JERA President Satoshi Onoda said, "It is our great honour to participate in the largest IPP in Bangladesh. Together with Reliance Power, a leading private power company in India, JERA will realize a stable power supply and contribute to sustainable economic growth in Bangladesh."

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