Anil D. Ambani, Chairman, Reliance Power while addressing the 23rd Annual General Meeting of Reliance Power informed the shareholders that Reliance Power’s 750 MW LNG based power project in Bangladesh being implemented with an investment outlay of US$ 1 Billion is expected to achieve financial closure in the current financial year itself.
He added that Reliance Power has signed a MOU with Bangladesh Government to develop 3000 MW LNG Power project in Meghnaghat and 500 mmscfd LNG Terminal at Qutubdia Island in Bangladesh.
In the Phase – 1, the company is developing 750 MW power project and 500 mmscfd LNG Terminal with an investment outlay of nearly US$ 1 Billion which is the largest FDI in Bangladesh.
The phase 1 of the project is expected to achieve commercial operation by March 2020.
The Bangladesh project will generate earning in US Dollar for the company as it will get dollar denominated Tariff in this project.
Implementation of the project will significantly enhance top line and bottom line of the company, Mr Ambani told the shareholders
Talking about other growth opportunities, Anil Ambani said,
· “The sector is undergoing a consolidation phase and is offering a number of inorganic growth opportunities. Company will continue to explore these to accelerate value accretive growth and exploit synergies with the existing portfolio.
· The company will also look at the opportunities in the commercial coal mining.
While sharing the performance of the company, Anil Ambani said,
· Reliance Power is amongst India’s top 3 leading private power generation companies. In FY’17 all plants operated at availability of ~90% and average PLF of 79% compared to national thermal average PLF of 60%
· Sasan UMPP in its second successive year recorded best-in-class operating performance by generating 17.0 Million Tonnes of coal; 29.5 Billion Units of power at 85% PLF. Currently it is operating at 100% availability
· Reliance Power has been delivering consistent and profitable financials. During FY’ 17, Revenue was up 3%; EBITDA was up 2% and PAT jumped 23%.
· Reliance Power is conservatively leveraged with a Debt: Equity ratio of ~1.33:1, one of the lowest in the power sector.
· Risk Management initiatives taken with respect to Tilaiya (SPV transfer activities), Krishnapatnam (On the lines of Tilaiya) are well on track. It effectively reduces future Capex pipeline by Rs. 56,000 Cr
· The company has been continuously bringing down its leverage by timely repayment of debts at holding company level and its subsidiaries.
· Leverage will reduce further with the Company’s continued focus on delivering excellence in operating performance in all its SPVs and efforts to put its gas based capacity on track having achieved a significant milestone with the issuance of LOI (Letter of Intent) for Phase I of Bangladesh Project
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