Reliance Power to sell equipment from Samalkot Project

Reliance Power is planning to sell equipment at its stranded Samalkotgas-based project in Andhra Pradesh to a similar project in Bangladesh for debt reduction.

Reliance Power has sold the Module 1 equipment to the750 MW gas-based project which is being jointly developed by Reliance Power and JERA, Japan at Meghnaghat in Bangladesh. The module will be sold to Samsung C&T Corporation of South Korea (the EPC contractor for the gas-based project in Bangladesh) for Rs 15.4 billion. Samalkot project has a total debt of Rs 25 billion and it will realise about Rs 15 billion from this sale. The sale of the other two modules is expected to generate enough funds for the remaining Rs 10 billion debt. The company has received the requisite permission and the export will be completed by the end of July 2021.

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