Reliance Power on Tuesday said it has signed a partnership agreement with Japanese energy major JERA for jointly setting up 750 mega watt (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 said in a regulatory filing.

Reliance Power said the transaction will result in debt reduction for Reliance Power of Rs 835 crore ($116 million) payable to US-Exim. 

The project will be set up within 36 months of signing the agreements, the company added.

"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," Reliance Group of Companies Chairman Anil D Ambani said.

Shares of Reliance Power were trading 6.48 per cent higher at Rs 3.45 apiece on BSE.