Reliance Power shines post signing of JV pact

Reliance Power has signed a joint venture (JV) with JERA for developing 750 MW gas-based combined cycle power project in Bangladesh. Reacting to this news, the stock of the company surged by 8.64 per cent.

In this JV between Reliance Power and JERA, which is one of the largest power utilities in Japan, Reliance Power will hold majority stake of 51 per cent, while JERA will hold 49 per cent stake in the JV company.

Previously, Reliance Power signed project agreements for setting up 3000 MW gas based combined cycle power project in phases containing power purchase and land lease agreements with BPDB for the power project and gas supply agreement with Titas Gas, which is a subsidiary of Petrobangla, for supply of gas to the power project and an implementation agreement with Ministry of Power, Energy and Mineral Resources. The project is intended to be set up within 36 months.

Anil Ambani, the chairman of Reliance group of companies, mentioned that the JV will be responsible for the industrial and economic growth of both Bangladesh and India.

The president of JERA, Satoshi Onoda, believes that for JERA, this partnership will result in a stabilised power supply and contribute to sustainable economic growth in Bangladesh.

Reliance Power Limited is a company that is a part of Reliance Group having business operations in the power generation and coal resource sector with power projects in the private sector in India based on coal, gas and renewable energy. JERA Co., Inc. (JERA) is a Japanese company based on the alliance entered into between Tokyo Electric Power Company and Chubu Electric Power Company containing a power generation portfolio.

On Tuesday the stock of Reliance Power closed at Rs. 3.52, up by 8.64 per cent or Rs. 0.28 per share. The 52-week high was Rs. 39.25 and 52-week low was Rs. 2.7 on the BSE.