Reliance Power signed a partnership agreement with JERA, one of the largest power utilities of Japan, for jointly setting up 750 MW gas-based combined cycle power project (Phase-1) at Meghnaghat, Bangladesh. Reliance Power will hold 51 per cent stake while JERA will hold 49 per cent stake in the joint venture company.

Reliance Power had signed an MoU, during PM Narendra Modi’s visit to Bangladesh in June 2015, for setting up 3,000 MW gas-based combined cycle power project in phases in Bangladesh.

The Project Agreements include the Power Purchase Agreement and Land Lease Agreement with Bangladesh Power Development Board (BPDB) for the power project, Gas Supply Agreement with Titas Gas, a subsidiary of Petrobangla for the supply of gas to the power project and Implementation Agreement with Ministry of Power, Energy and Mineral Resources. The project will be set up within 36 months of signing the agreements.

Anil Ambani, Chairman, Reliance Group of companies said, “This joint venture project will give a tremendous boost to the economic and industrial growth of Bangladesh and will enhance the energy security of the country with clean, green and reliable LNG based power.” The project will represent the largest Foreign Direct Investment (FDI) in the power sector in Bangladesh.

Reliance Power will relocate one module of equipment procured from original equipment manufacturers, for its combined cycle power project at Samalkot in Andhra Pradesh; for the Phase-1 project in Bangladesh. The transaction will result in debt reduction for Reliance Power of ₹835 Crore (USD 116 million) payable to US-Exim.

The shares of Reliance Power were 7.41 per cent higher at ₹3.48.

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