2 min readMumbaiSep 4, 2019 02:38 AM IST
First published on: Sep 4, 2019 at 02:38 AM IST
RPower will hold 51 per cent stake while JERA will hold 49 per cent stake in the JV.
Reliance Power (RPower) has entered into a joint venture (JV) with Japanese power utility JERA to set up a 750 MW gas-based power project (Phase-1) at Meghna Ghat in Bangladesh. RPower will hold 51 per cent stake while JERA will hold 49 per cent stake in the JV.
The agreement includes the power purchase agreement (PPA) and land lease agreement with the Bangladesh government for the project, gas supply agreement with Titas Gas, a subsidiary of Petro Bangla, and implementation agreement with Bangladesh’s Ministry of Power, Energy and Mineral Resources. The project will be set up within 36 months of signing the agreements.
K Raja Gopal, CEO, RPower, said, “The company will have a total nine-month period for financial closure, which will include three-month of grace period. Once the financial closure is done, the real work on ground will start. In the next few weeks we will sign the equipment supply contract, which is the major component of the project.”
The project is likely to cost around Rs 5,430 crore or $750 million. “We are working hard on financial closure and also evaluating the earlier sanctions. If we get a better proposal, we will go for that,” he added. The Indian power utility firm will relocate one module of equipment procured from an original equipment manufacturer for its Samalkot plant in Andhra Pradesh for the Phase-1 project in Bangladesh.
The transaction will result in debt reduction for RPower of Rs 835 crore. —FE
RPower will hold 51 per cent stake while JERA will hold 49 per cent stake in the JV.
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