Reliance Power defaults on repayment to lenders
Reliance Anil Dhirubhai Ambani Group firm Reliance Power has defaulted on repayments to Axis Bank, Yes Bank and Lakshmi Vilas Bank (LVB) due on January 31, 2020. As per regulatory disclosures, the company has defaulted on repaying Rs 78 lakh to Axis Bank, Rs 1.09 crore to Yes Bank and Rs 1.25 crore to LVB. The firm had taken a loan of Rs 75 crore from Axis Bank, Rs 63 crore from Yes Bank and Rs 20 crore from LVB. Total borrowings from financial institutions stood at Rs 1,350 crore as on March 3, 2021.
Reliance Power had earlier disclosed during the December quarter that the group was confident of meeting its obligations by generating sufficient and timely cashflows through time-bound monetisation of gas-based power plant equipment and other assets of certain subsidiaries. The firm also hopes to realise the amount from ongoing regulatory arbitration claims. “Considering the dependence on these material uncertain events and realisation of assets, the group is confident that such cashflows would enable it to service its debt and discharge its liabilities in the normal course of its business,” Reliance power said.
