BusinessStock Market

Reliance Power to sell Samalkot project equipment to cut debt

1 Mins read
Reliance power

Anil Ambani-led Reliance Power is predicted to understand ₹1,500 crores by selling equipment lying at its struggling Samalkot project to an identical project in Bangladesh.

The company has received requisite permission and therefore the export is going to be completed by July-end, said a corporation official.
The proceeds from the sale will bring down US-Exim debt by about ₹1,500 crores, he added.

Anil Dhirubhai Ambani Group has been in debt reduction mode to revive the infrastructure business.

The company has sold the Module 1 equipment to a gas-based project jointly being developed by Reliance Power alongside JERA of Japan in Bangladesh. The gas-based project has achieved financial closure for the primary phase of 750-MW generation capacity. The project is being found out by the corporate at Meghnaghat in Bangladesh.

Samalkot Power, a wholly-owned subsidiary of Reliance Power, has received approval from the Export-Import Bank of us (US Exim Bank) to sell one module of kit to Samsung C&T Corporation of South Korea for ₹1,540 crores.

Samsung C&T Corporation is that the EPC contractor for the new gas-fired power generation project in Bangladesh.

In 2019, Reliance Power entered into a debt restructuring agreement with US-Exim for its Samalkot Project debt of ₹2,430 crores. The US-Exim has agreed to convert amortising repayment schedule into bullet repayments and extended the ultimate loan maturity to June 2022 and lowered the rate of interest to 2.65 percent once a year.

The total debt of the Samalkot project was about ₹2,500 crore out of which ₹1,500 crores are going to be exhausted with the sale of Module-1. The sale of the remaining two modules is predicted to get sufficient funds for wiping out the remaining debt of ₹1,000 crore and also providing additional funds for the corporate.

The company is pursuing the sale of the other two modules with US-Exim and can generate surplus for Reliance Power after paying off-balance debt, said the official.

All the facility plants of Reliance Power remained fully operational despite facing Covid-19 and lockdown challenges. R-Power continues to be one of India’s top three private power generation companies with an operating portfolio of around 6,000 MW, he added.

Related posts
Stock Market

Reliance Power shares hit upper circuit after co turns profitable

1 Mins read
NEW DELHI: Reliance Power shares hit the upper circuit in early deals on Monday after the Anil Ambani-led firm reported a consolidated net income of Rs 72.56 crore for the March quarter,…
Get the latest updates by subscribing to us

Subscribe to us for getting the benefits of climbstreet and latest updates

Leave a Reply

Your email address will not be published. Required fields are marked *