Reliance Power ropes in Japan’s JERA for Bangladesh power project for Rs 835 crore

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 with one of Japan’s largest power utilities of Japan. On Sunday, the company in Dhaka 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 Bnagladesh ministry of power, energy and mineral resources.
R-Power had signed the MoU for the project in Dhaka during PM Narendra Modi’s visit to June 2015 Bangladesh. The MoU envisages setting up a 3,000-MW gas-based power project in phases. The project will represent the largest FDI 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.