Reliance Power Inks Rs 132.39 Cr Deal With JSW Renewable Energy For Maharashtra Wind Project
Anil Ambani, the chairman of Reliance Group, is witnessing a resurgence in his company's fortunes as Reliance Power clinches a significant deal with JSW Renewable Energy. The transaction, valued at Rs 132.39 crore, marks a pivotal moment in Reliance Power's trajectory as it divests a 45 MW wind power project located in Vashpet, Maharashtra.
In recent weeks, Reliance Power's shares have shown notable resilience, often hitting the upper circuit. This rebound is a promising development for Anil Ambani, especially considering the challenging times the company faced, with its shares plunging to Rs 1.13 on 27 March 2020.
JSW Renewable Energy, a key player in the renewable energy sector, adds this wind power project to its robust portfolio. With a total locked-in generation capacity of 12.5 GW, JSW Energy boasts a diversified mix of operational and under-construction assets across wind, thermal, and hydro segments, along with substantial energy storage capacity.
The infusion of Rs 132.39 crore from JSW Renewable Energy comes as a welcome relief for Reliance Power, allowing it to settle debts owed to several financial institutions. Previously, Reliance Power resolved debts with ICICI Bank, Axis Bank, and DBS Bank, collectively owned around Rs 400 crore.
The settlement with these lenders resulted in the recovery of approximately 30-35 per cent of the principal loans. Additionally, Reliance Power is on track to settle a debt of Rs 2100 crore with JC Flowers Asset Reconstruction Company.
This deal follows Reliance Power's recent agreement to sell its 1,200 MW Kalai II hydroelectric project in Arunachal Pradesh to THDC India for Rs 128.39 crore earlier this year. These strategic moves underscore Reliance Power's commitment to streamlining its operations and optimising its asset portfolio for sustained growth and profitability in the evolving energy landscape.
