Anil Ambani-led Reliance Power has formed a joint venture with Japan-headquartered Jera Co. Inc to develop a new gas-fired power generation project in Bangladesh.

The company has achieved financial closure for the project with a group of lenders including Japan Bank for International Cooperation and Asian Development Bank and all requisite conditions for availing drawdown under the loan agreements have been achieved, said Reliance Power in a statement on Thursday.

The project is to build, own, and operate a 745-MW (net output: 718 MW) natural gas combined-cycle power project in Meghnaghat near Dhaka.

Reliance Power’s wholly-owned subsidiary Samalkot Power has received the approval from the Export Import Bank of the United States to sell one module of equipment to EPC contractor of the project Samsung C&T Corporation of South Korea for ₹1,540 crore.

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Reliance Power is expected to reduce debt by ₹3,000 crore by this month-end.

Reliance Power, which owns an operating portfolio of 5,945 MW, has networth of ₹12,063 crore and debt-equity ratio of 2.24:1, which is among the lowest in the industry, it said.

Published on March 4, 2021