Reliance Power has signed an agreement to sell a 45 MW wind power project in Maharashtra to JSW Renewable Energy for ₹132 crore, an exchange filing said.

JSW Renewable Energy is a wholly-owned subsidiary of JSW Neo Energy and a step-down subsidiary of JSW Energy.

Reliance Power will be using the proceeds of the sale to retire its debt, sources said, adding that it was aiming to be debt-free by the end of the current financial year. It had a total debt of ₹700 crore as on March 31, 2023.

The company, part of the Anil Dhirubhai Ambani Group, has been settling its debt with its lenders. In the last three months, it has settled its dues to three banks, DBS Bank, ICICI Bank, and Axis Bank.

The wind power project in Vashpet reported an income of ₹28.8 crore in FY23 and had a net worth of ₹30.3 crore.

JSW Energy has total locked-in generation capacity of 12.5 GW comprising 7.2 GW operational, 2.6 GW under-construction across wind, thermal and hydro and a pipeline of 2.7 GW capacity from SECI (Solar Tranche XIII and Wind Tranche XVI), SJVN and GUVNL. In addition, the company has 3.4 GWh of locked-in energy storage capacity through a battery energy storage system and hydro pumped storage project. It has a target to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030.

The transaction is expected to close by May 21, 2024.