R-Power ropes in Japan major for B’desh project

New Delhi: Reliance Power (R-Power) has roped in Japanese energy major JERA as a 49% partner for its 750 mw gas-fired power project at Meghnaghat in Bangladesh, a move that will see the Anil Ambani-led company pare its debt to US Exim Bank by Rs 835 crore.
R-Power will hold 51% stake in the joint venture for implementing the project. In Dhaka on Sunday, the company signed PPA (power purchase agreement) and land lease agreement with BPDB (Bangladesh Power Development Board), gas supply agreement with Titas Gas, a subsidiary of state-run Petrobangla, and implementation agreement with the Bangladesh ministry of power, energy and mineral resources. R-Power had signed the MoU for the project in Dhaka during PM Narendra Modi’s visit in June 2015. The MoU envisages setting up a 3,000 mw gas-based power project in phases.
The project will represent the largest FDI (foreign direct investment) in Bangladesh’s power sector. It will be set up within 36 months of signing the agreements, the company said in a statement on Tuesday.