Reliance Power divests holding in Tilaiya UMPP SPV for Rs 113 crore

Last Updated: Thu, May 17, 2018 15:43 hrs
A shareholder speaks on a mobile phone while attending the annual general meeting of Reliance Capital in Mumbai

Mumbai: Reliance Power has divested its entire holding in Jharkhand Integrated Power Limited (JIPL) to Jharkhand Urja Vikas Nigam Ltd for Rs 112.64 crore, a regulatory filing by the company said here on Wednesday.

"The company has transferred its entire holding of 1,49,900 equity shares of Rs 10 each, aggregating to Rs 14,99,000/- held in Jharkhand Integrated Power Limited, a special purpose vehicle created for development of Tilaiya UMPP, to Jharkhand Urja Vikas Nigam Limited, the lead procurer, acting on behalf of procurers of Tilaiya UMPP," the regulatory filing said.

According to sources, Reliance Power also got the bank guarantees of Rs 600 crore released from the procurers.

Reliance Power had announced the termination of power purchase agreement (PPA) of its 3,960 MW Tilaiya Ultra Mega Power Project (UMPP) in Hazaribagh district, in Jharkhand in April 2015.

Based on tariff-based bidding managed by Power Finance Corporation (PFC), Reliance Power was awarded the Tilaiya UMPP in February 2009. JIPL, the Special Purpose Vehicle (SPV) for implementing the project, was handed over to Reliance Power by PFC in August 2009. JIPL had signed a PPA with 18 power off-takers in 10 states for 25 years.

Reliance Power was trading at Rs 35.70 per share, up 7.05 per cent in the BSE at 1.40 pm.