(FE)
Reliance Power has entered into a joint venture with power utility JERA of Japan to set up a 750 MW gas-based power project (Phase-1) at Meghna Ghat in Bangladesh. Reliance Power will hold 51% stake while JERA will hold 49% stake in the joint venture.
The agreement includes the power purchase agreement (PPA) and land lease agreement with the Bangladesh government for the power project, gas supply agreement with Titas Gas, a subsidiary of Petro Bangla, and implementation agreement with the Bangladesh’s ministry of power, energy and mineral resources. The project will be set up within 36 months of signing the agreements.
K Raja Gopal, CEO of Reliance Power, told Financial Express, “The company will have a total nine month period for financial closure, which will include three month of grace period. Once the financial closure is done, the real work on ground will start. In the next few weeks we will sign the equipment supply contract, which is the major component of the project.” The project is likely to cost around Rs.5,430 crore or $750 million. “We are working hard on financial closure and also evaluating the earlier sanctions. If we get a better proposal, we will go for that,” said Raja Gopal.
