– Two subsidiary companies of Reliance Power settled the debt.

These days, Mumbai Reliance Power seems to be very active in repaying the loan. Two subsidiary companies of Reliance Power have settled a loan of Rs 1,023 crore with Reliance Commercial Finance, the arm of Authum Investments. The company informed the stock exchange that two subsidiary companies of Reliance Power Limited – Kalai Power Private Limited and Reliance Cleangen Limited have entered into a loan settlement with Reliance Commercial Finance Limited (RCFL), a wholly owned subsidiary of Authum Investment and Infrastructure Limited. And an agreement has been signed.
The loan agreement with Reliance Commercial Finance comes a few days after Reliance Power announced the sale of its 45 MW wind power project in Maharashtra to JSW Renewable Energy for Rs 132 crore, the company said. Kalai Power Pvt Ltd had in December 2023 sold the development rights of its proposed 1,200 MW hydro-power project in Arunachal Pradesh to THDC India Ltd for Rs 128 crore. According to a Reliance Power official, the funds raised from the sale of these assets were used to repay the loan.
Authm Investments had acquired Reliance Commercial Finance and Reliance Home Finance from Reliance Capital Limited in 2022 in a bank-led resolution process. Reliance Power has been actively signing loan settlement agreements with various banks including DBS Bank, ICICI Bank and Axis Bank in the last few months. According to the news, Reliance Power aims to become a debt-free company on a standalone basis by the end of March 31, 2024. At the end of financial year 2023, the company had an outstanding loan of about Rs 700 crore.