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Anil Ambani-led Reliance Power is expected to realise ₹1,500 crore by selling equipment lying at its struggling Samalkot project to a similar project in Bangladesh.
The company has received requisite permission and the export will be completed by July-end, said a company official.
The proceeds from sale will bring down US-Exim debt by about ₹1,500 crore, he added.
Anil Dhirubhai Ambani Group has been on debt reduction mode to revive infrastructure business.
The company has sold the Module 1 equipment to a gas-based project jointly being developed by Reliance Power along with JERA of Japan in Bangladesh. The gas-based project has achieved financial closure for the first phase of 750-MW generation capacity. The project is being set up by the company at Meghnaghat in Bangladesh.
Samalkot Power, a wholly-owned subsidiary of Reliance Power, has received the approval from the Export Import Bank of the United States (US Exim Bank) to sell one module of equipment to Samsung C&T Corporation of South Korea for ₹1,540 crore.
Samsung C&T Corporation is 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 crore. The US-Exim has agreed to convert amortising repayment schedule into bullet repayments and extended the final loan maturity to June 2022 and lowered the interest rate to 2.65 per cent per annum.
The total debt of the Samalkot project was about ₹2,500 crore out of which ₹1,500 crore will be wiped out with the sale of Module-1. The sale of the remaining two modules is expected to generate sufficient funds for wiping out the remaining debt of ₹1,000 crore and also providing additional funds for the company.
The company is pursuing sale of other two modules with US-Exim and will generate surplus for Reliance Power after paying off balance debt, said the official.
All the power 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 operating portfolio of around 6,000 MW, he added.
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