Reliance Power begins equipment exports from its Samalkot project to Bangladesh proj to cut debt

Reliance Power has started the export of power equipment from its Samalkot project in Andhra Pradesh to its Bangladesh project, a move that will help the company pare debt of nearly Rs 1,500 crore. Reliance Power has sold the Module 1 of the gas-based power equipment, which has a capacity of 750 MW, to the Bangladesh project.

“These equipment are being exported from its Samalkot project. The process of exporting the equipment for the 750 MW LNG-based power project in Bangladesh is expected to be completed by the end of July 2021,” a senior official said.

According to the senior company official, the sale of these equipment from the Samalkot to Bangladesh project will bring down Reliance Power’s US-EXIM debt by nearly Rs 1,500 crore. The Bangladesh project is being jointly developed by the company along with Japanese energy major JERA.

The project has also achieved a financial closure for its first phase of 750 MW generation capacity. Samsung C&T Corporation is the EPC (engineering, procurement and construction) contractor for the Bangladesh project.

Reliance Power had imported three modules of gas-based power equipment for its Samalkot project, but the project could not take shape due to the unavailability of gas in the country. Now the company is using these power equipment for its Bangladesh project.

The total US-EXIM debt for the Samalkot project is around Rs 2,500 crore, out of which Rs 1,500 crore will be repaid with the sale of Module 1.