The best stories of the day, in your inbox

Two Subsidiaries of Reliance Power Settle Rs 1,023 Crore Debt

reliance power

In a significant development, Reliance Power announced today that its two subsidiaries have successfully settled a debt amounting to ₹1,023 crore. The debt resolution was achieved through a strategic agreement with Authum Investment’s arm, Reliance Commercial Finance.

The Subsidiaries Involved

  1. Kalai Power Pvt Ltd: One of the key players, Kalai Power Pvt Ltd, played a pivotal role in this settlement. Notably, in December 2023, Kalai Power had already sold the development rights of its proposed 1,200 Megawatt hydro-electric project in Arunachal Pradesh to THDC India Ltd for a sum of ₹128 crore.
  2. Reliance Cleangen Ltd: The second subsidiary, Reliance Cleangen Ltd, also participated in the debt settlement process. Both subsidiaries signed a debt settlement and discharge agreement with Reliance Commercial Finance Ltd (RCFL), which is a wholly-owned subsidiary of Authum Investment & Infrastructure Limited.

The Context

The debt settlement comes on the heels of another significant transaction by Reliance Power. Just a few days ago, the company announced the sale of its 45 MW wind power project in Maharashtra to JSW Renewable Energy for a consideration of ₹132 crore.

Authum Investment’s Role

Authum Investment, as part of a banks-led resolution process, had previously acquired Reliance Commercial Finance and Reliance Home Finance from Reliance Capital Ltd in 2022. The recent settlement further strengthens the financial position of Reliance Power.

Reliance Power’s Debt-Free Aspirations

Reliance Power has been actively working towards becoming a debt-free company on a standalone basis. As of the end of fiscal year 2023, the company had an outstanding debt of approximately ₹700 crore. By the close of this fiscal year (March 31, 2024), Reliance Power aims to achieve its debt-free objective1.

The company has also been proactively signing debt settlement agreements with various banks, including DBS BankICICI Bank, and Axis Bank.

In summary, Reliance Power’s successful debt settlement underscores its commitment to financial stability and strategic growth. Investors and stakeholders are closely monitoring the company’s progress as it navigates its path toward a debt-free future.

Disclaimer: This article is based on publicly available information and should not be considered financial advice. Always consult with a qualified financial advisor before making any investment decisions.

The Ministry of Commerce and Industry has issued a crucial advisory to

The Jallianwala Bagh massacre of 1919 remains etched in history

Amid escalating tensions in the Middle East, the United States

Tragedy struck the bustling city of Sydney today as a

The highly anticipated big-budget Ramayana film, starring Ranbir Kapoor, is

The United Kingdom has significantly increased the minimum income required

PM Narendra Modi, in a groundbreaking move, recently engaged with

Ashneer Grover, the co-founder and former managing director of BharatPe, is

A resurgence of whooping cough, a highly contagious respiratory illness,

The Andhra Pradesh Board of Intermediate Examination (BIEAP) has officially declared

In a significant breakthrough, the National Investigation Agency (NIA) has apprehended two

Bade Miyan Chote Miyan, the latest Bollywood offering, has hit

A tragic accident in Balochistan, Pakistan, has claimed the lives

In a significant political development, former Congress spokesperson Rohan Gupta has crossed

Narnaul, Haryana: In a heart-wrenching incident, six school children lost

In a highly anticipated development, Elon Musk, the visionary entrepreneur behind Tesla,

In a significant move to address the labor shortage faced

In a candid interview with Newsweek magazine, Prime Minister Narendra Modi emphasized

Truecaller, the popular caller identity and spam detection app, has

Marcelino Abad, a remarkable man hailing from the serene landscapes

At the recent Google Cloud Next 2024 event, the tech giant unveiled

The Supreme Court has once again refused to accept an

Professor Peter Higgs, the brilliant physicist renowned for his groundbreaking

In a significant development, Paytm, the digital payment and financial services

In a tragic incident that has sent shockwaves through the

In a significant move, Turkey has imposed export restrictions on 54 vital products destined

Get daily updates in your inbox. Subscribe to our newsletter.