Reliance Power Settles ₹1,023 Crore Debt with Reliance Commercial Finance

27 Mar 2024 , 02:48 PM

Reliance Power announced the settlement of debt worth ₹1,023 Crore with Reliance Commercial Finance, a subsidiary of Authum Investment & Infrastructure Limited.

The settlement involved two subsidiaries of Reliance Power, namely Kalai Power Pvt Ltd and Reliance Cleangen Ltd, signing a debt settlement and discharge agreement with Reliance Commercial Finance Ltd (RCFL).

According to the regulatory filing, the total outstanding debt settled amounted to ₹1,023 Crore. This settlement follows Reliance Power’s recent sale of its 45 MW wind power project in Maharashtra to JSW Renewable Energy for ₹132 Crore.

In December 2023, Kalai Power sold the development rights of its proposed 1,200 Megawatt hydro-electric project in Arunachal Pradesh to THDC India Ltd for ₹128 Crore.

Proceeds from asset sales were utilized to retire debt, as confirmed by a company official.

Authum Investment had acquired Reliance Commercial Finance and Reliance Home Finance from Reliance Capital Ltd in 2022 through a banks-led resolution process.

Reliance Power has been actively engaging in debt settlement agreements with various banks like DBS Bank, ICICI Bank, and Axis Bank in recent months.

With a goal to become debt-free on a standalone basis, Reliance Power aims to achieve this by the end of March 31, 2024, aiming to eliminate its outstanding debt of approximately ₹700 Crore by the end of fiscal 2023.

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