RPower aims to attain financial closure for $1-bn Bangladesh unit in FY18

Reliance Group Chairman Anil Ambani with his son Anmol addresses the Annual General Meeting of Reliance Capital in Mumbai on Tuesday. (Photo: PTI)
Anil Ambani-led Reliance Power is expecting to complete financial closure for its phase 1 of 750 MW liquefied natural gas (LNG) power project in Bangladesh in this financial year.

"Our efforts to put our 750 MW gas-based project in Bangladesh is on track. We will be able to achieve financial closure in the current fiscal. We expect it to be commercially operational by March 2020," Ambani told shareholders during the 23rd annual general meeting here.

In phase I, the company is developing 750 MW power project and 500 mmscfd LNG terminal with an investment outlay of nearly $1 billion which is the largest FDI in Bangladesh, he said.

Ambani said the company has also achieved a significant milestone with the issuance of a letter of intent (LoI) for the first.

Reliance Power has signed an MoU with the Bangladesh government to develop 3,000 MW LNG project in Meghnaghat and 500 mmscfd LNG Terminal at Qutubdia Island in Bangladesh.

"This project will generate earning in the dollar for the company as it will get dollar-denominated tariff in this project. Its implementation will significantly enhance top line and bottom line of the company," Ambani said.

Talking about the growth opportunities, he said the sector is undergoing a consolidation phase and is offering a number of inorganic growth opportunities.

"We will continue to explore these to accelerate value accretive growth and exploit synergies with the existing portfolio. The company will also look for opportunities in the commercial coal mining," Ambani said.

He further said the company has been continuously bringing down its leverage by timely repayment of debts at holding company level and its subsidiaries.

"Leverage will reduce further with the company's continued focus on delivering excellence in operating performance in all its SPVs. The company is conservatively leveraged with a debt-equity ratio of 1.33:1, one of the lowest in the power sector," he said.

Ambani further said the company's risk management initiatives taken with respect to 4000 MW Tilaiya and 4000 MW Krishnapatnam project are well on track.

"This will effectively reduce future capex pipeline by Rs 56,000 crore," he added.

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