Reliance Power Gets Shareholder’s Approval To Increase The Borrowing Limit

In a special resolution passed on Wednesday (27 September), Reliance Power shareholders have approved to increase the borrowing limit of the company up to five times it’s paid up capital and free reserves.

The special resolution to enable the board of director to borrow funds (apart from temporary loans) up to five times of the paid-up capital and free reserves was passed by the requite majority by shareholders in the annual general meeting of the company held yesterday, Reliance Power said in a BSE filing today.

At present, the company is authorised to raise funds only up to three times the paid-up capital and free reserves, which was approved in 2014 by the shareholders.

Apart from increasing the borrowing limit, the shareholders also authorised the board to raise money through the issuance of non- convertible debentures in one or more series on private placement basis.

Reliance Power Chairman Anil Ambani announced the company’s plan to explore growth opportunities in commercial coal mining segment while addressing the company's shareholders at the 23rd annual general meeting (AGM).

Ambani mentioned that the sector is undergoing a consolidation phase, with new opportunities of inorganic growth.

“Company will continue to explore these to accelerate value accretive growth and exploit synergies with the existing portfolio,” said Ambani. In another announcement, the Chairman informed the shareholders that Reliance Power's 750 MW LNG-based power project in Bangladesh, being implemented with an investment outlay of $1 billion, is expected to achieve financial closure in the current financial year.

The phase-1 of the project envisages the development of a 750 MW power project and 500 mmscfd LNG terminal with an investment outlay of nearly $1 billion which is the largest FDI in Bangladesh. The phase 1 is expected to achieve commercial operation by March 2020.

Inputs from PTI