Reliance Power now a Debt-Free Company; Paid all its Debts and Remaining Dues

Reliance Power has started repayment of all debts to lenders and is now free of debt on its standalone basis, a source close to the company says. The company said it has paid back all the banks, which had close to Rs.800 crore in debt.

Reliance Power signed multiple debt settlement agreements with marquee bankers including IDBI Bank, ICICI Bank, Axis Bank, and DBS during the period December 2023 to March 2024. The company has paid off the entire debt it had with these banks, sources claimed. As a result, now the company Reliance Power has now become a debt-free company.

Reliance Power in December 2023 signed an agreement with THDC for the sale of development rights of its proposed 1,200MW hydro-electric project worth Rs.128 crore in Arunachal Pradesh. In a similar development, in March 2024, the company sold the 45 MW wind energy project in Vashpet, Maharashtra to JSW Renewable Energy for Rs.132 crore.

The cash from those sales went to pay off debt. Reliance Power has an equity of Rs.4,016 crore with the participation of more than 38 lakh retail shareholders. At present, the company operates at a capacity of 5900 MW comprising 3960 MW Sasan UMPP and the 1200 MW Rosa Thermal power plant in Uttar Pradesh.

Sasan Ultra Mega Power Project (UMPP) is one of the largest integrated coal-based power plants all over the world.