New Delhi: Businessman Anil Ambani’s company Reliance Power is focusing completely on repaying the debt. Reliance Power’s two subsidiaries have settled a debt of Rs 1023 crore with Reliance Commercial Finance, a branch of Authum Investment. The company informed the stock market that two subsidiaries of Reliance Power Limited, Kalai Power Private Limited and Reliance Cleangen Limited, have signed a loan settlement and redemption agreement with Reliance Commercial Finance Limited (RCFL), a wholly-owned subsidiary of Authum Investment and Infrastructure Limited.
This is how the loan was repaid
The company said that it has settled a loan of Rs 1,023 crore. The loan agreement with Reliance Commercial Finance comes a few days after Reliance Power announced the sale of its 45 MW wind power project in Maharashtra to JSW Renewable Energy for Rs 132 crore. Kalai Power sold the development rights for its proposed 1,200 MW hydropower project in Arunachal Pradesh to THDC India Limited for Rs 128 crore in December 2023. According to a company official, the funds raised from the sale of these assets were used to repay the loan.
aim to become a debt-free company
Authum Investments had acquired Reliance Commercial Finance and Reliance Home Finance from Reliance Capital Limited in 2022 in a bank-led resolution process. Reliance Power has been actively signing debt settlement agreements with various banks including DBS Bank, ICICI Bank, and Axis Bank in the last few months. Reliance Power aims to become a debt-free company on a standalone basis by the end of March 31, 2024. The company had an outstanding debt of around Rs 700 crore at the end of FY 2023.