Reliance Power, power generation company of Reliance Group, inked a partnership agreement with JERA, Japan-based power utility company, for jointly setting up 750 MW gas-based combined cycle power project (Phase-1) at Meghnaghat, Bangladesh.
Reliance Power will hold 51 percent stake in the joint venture (JV) company, while JERA will hold 49 percent stake.
Reliance Power had signed an MoU in June 2015, for setting up 3,000 MW gas-based combined cycle power project in phases. The project agreements include the power purchase agreement (PPA) and land lease agreement with BPDB for the power project, gas supply agreement with Titas Gas, a subsidiary of Petrobangla for the supply of gas to the power project and implementation agreement with Ministry of Power, Energy and Mineral Resources.
The project will be set up within 36 months of signing the agreements. This is the gas-based largest IPP in Bangladesh.
The project will represent the largest Foreign Direct Investment (FDI) in the power sector in Bangladesh, and will cater to the country’s increasing needs for power.
Reliance Power will relocate one module of equipment procured from original equipment manufacturers, for its combined cycle power project at Samalkot in Andhra Pradesh, India, for the Phase-1 project in Bangladesh.
The transaction will result in debt reduction for Reliance Power of around Rs 835 crore (USD 116 million) payable to US-Exim.