Reliance Power JV achieves financial closure for gas-based power project in Bangladesh

New Delhi: Reliance Power Limited and JERA Co, through their joint venture project company, are developing a new gas-fired power generation project in Bangladesh. The project company has achieved financial closure for the project with a group of lenders that includes Japan Bank for International Cooperation and Asian Development Bank and all requisite conditions for availing drawdown under the loan agreements have been satisfied. The project is to build, own, and operate a 745 MW (net output: 718 MW) natural gas combined-cycle power project in Meghnaghat, Narayanganj, located approximately 40 km southeast of Dhaka.

Reliance Power's wholly owned subsidiary Samalkot Power Limited has received the approval from the Export Import Bank of the United States to sell one module of equipment (Module 1) to Samsung C&T Corporation of South Korea, who is the EPC contractor for the Project, for ~Rs. 1540 crore, said Reliance Power in an official statement on Thursday. 

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"Notice to proceed has been issued by the project company to Samsung C&T, who 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 1 Project in Bangladesh," said the statement.

Reliance Power's net worth is Rs 12,063 crore and debt to equity ratio is 2.24:1, which is among the lowest in the industry (December 31, 2020). Reliance Power will achieve a total debt reduction of upto ~ Rs 3,000 crore by March 2021, said the statement.

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