Reliance Power to raise Rs 4,400 crore for Arunachal power plant

MUMBAI: Anil Ambani-led Reliance Power is in the market to raise Rs 4,400 crore or $800 million to achieve the financial closure of its first 700 MW Tato hydro power project in Arunanchal Pradesh. The company is setting up seven hydro projects with capacity of 4,620 MW in Arunanchal Pradesh & Uttrakhand.

Reliance Power CEO Jayarama Prasad Chalsani told TOI, "We will achieve the financial closure of 700 MW Tato hydel power plant by the end of this quarter. Each MW of hydro unit costs Rs 8-9 crore and 70% of the project cost would be funded by debt."

The company is in talks with the Indian lenders to secure debt for the project and the loan may be refinanced with cheaper overseas borrowings at a later stage. Reliance Group has in-principle agreement with the US and Chinese export credit agencies for funding of $15 billion for its power and telecommunications business. The company has initiated discussions to sign power purchase agreements (PPAs) to sale the power to Delhi and Mumbai.

Reliance Power shares gained over 5% to close at Rs 94 in firm Mumbai market on Friday as the firm reported 30% increase in its December quarter net profits to Rs 266 crore.

The company — with 1,840 MW of operational capacity — will add another 660 MW, the first unit of 3,960 MW Sasan UMPP, by early next month.

In addition, the company will also commission 45 MW wind power project in Maharashtra by end of this quarter.