Reliance Power has been exporting gear from its facility to Bangaladesh
Reliance Power has exported power tools from its Andhra Pradesh-based Samalkot plant to its Bangladesh-based facility. This step will enable the organization to pay off over Rs 1,500 crore in liabilities.
The Bangladeshi initiative has purchased Module 1 of Reliance Power’s gas-based power tools, which has a potential of 750 MW. Its Samalkot business is exporting these pieces of equipment.
According to a top member, “the procedure of export equipment for the 750 MW LNG-based power project in Bangladesh is projected to be ready by the end of July 2021.”
The export of this material from the Samalkot to Bangladesh program will reduce Reliance Power’s US-EXIM debts by about Rs 1,500 crores as per a top company employee.
A Bangladesh project is being undertaken in collaboration with JERA, a Japanese energy business. The program’s initial stage of 750 MW producing capacity has reached a financial close. The Bangladesh proposal’s EPC (engineering, buying, and building) contractor is Samsung C&T Corporation.
Reliance Power had gained three elements of gas-based heavy machinery for its Samalkot initiative. Still, given the lack of gas in the nation, the task could not get off the ground.
The power generators are now being used in the firm’s Bangladesh project. The Samalkot site’s entire US-EXIM debt is roughly Rs 2,500 crores, of which Rs 1,500 crore would be taken with the sales of Module 1.
They project the sale of the two remaining components to raise enough money to pay off the firm’s outstanding debt of Rs 1,000 crore while also providing extra funds.
The sale of Modules 2 and 3 is being undertaken in collaboration with US-EXIM and will create excess for Reliance Power after the rest of the US-EXIM loan is paid off.
In June 2019, R-Power agreed to a debt relief arrangement with US-EXIM for its Rs 2,430 crore liabilities. The US-EXIM had accepted to alter the amortizing payment plan to projectile repayments and prolong the loan maturity period to June 2022.
The reduction of interest had also been there to 2.65% per year. Considering the hurdles posed by COVID-19, Reliance Power’s power plants stayed utterly functional.
According to the expert, with a spectrum of roughly 6000 MW, R-Power remains one of India’s top 3 privatized power producing companies.