Reliance Power has received RBI’s approval for raising loan from the US and Chinese banks

By | September 2, 2011

A recent press report said that Reliance Power has received Reserve Bank of India’s approval for raising $2.2 billion loan from the US and Chinese banks, for the 3,960 mw-Sasan power project in Madhya Pradesh.

Reports said that $1.1 billion would be offered by Chinese banks, including Bank of China, China Development Bank and Export Import Bank of China.  It said that the funding from Chinese banks are the first-ever project financing done by Chinese banks.

Reports said that the Export Import Bank of United States has also approved funding of $917 million for the Sasan Ultra Mega Power Project (UMPP). Mr. J. P. Chalasani, CEO, Reliance Power said that the company is happy that the financial institutions in the US and China are confident about the company’s power generation business. He also said that the institutions were willing to provide long-term loans in spite of the challenging global conditions. He added saying that the lending has reduced the company’s cost of debt and has widened the source of funding for the Sasan project.

Reports said that the project is being executed by Sasan Power, a fully-owned subsidiary of Reliance Power. It also said that Sasan project has also received $150 million funding from other sources, and that its power project is expected to be commissioned by January 2013.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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