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ADAG group company Reliance Power has raised debt funding of $1 billion from three Chinese banks for its Sasan ultra mega power project in Madhya Pradesh. The three banks are China Exim Bank, Chinese Development Bank and China Export & Credit Insurance Corporation, Business Standard. Another ADAG group company, Reliance Infrastructure (Rel Infra), is entering power equipment construction business by setting up a $3 billion joint venture with Shanghai Electric Power Co to make boilers, turbines and generators inIndia.
Another added that Anil Ambani- owned co is also planning to set up four more joint ventures with its Chinese partner. The new JVs will require investment of upto $600 million and will offer services such as technical and design support, operations and maintenance, after-sales services and erection of power equipment. Rel Infra is said to be entering these joint ventures because lack of skilled manpower, which is required to set up and run these power plants.
In another report, the same banks which are funding Reliance Power are said to be funding Rel Infra’s joint venture withShanghai electric. The same report added that the banks will help Rel Infra ensure equipment supplier performance guarantees and also better finance terms with a longer repayment tenure. The banks are also said to be offering competitive rates as they want to promote such ventures. Rel Infra has previously worked with Shanghai Electric, and has recently commissioned it to supply power equipment to Yamuna Nagar project.
The major projects that Reliance Power have in hand right now are - the 4000 MW Sasan Ultra Mega power Project in Madhya Pradesh, the 4000 MW MP Power Generation Project in Madhya Pradesh and the 4000 MW Krishnapatnam Project in Andhra Pradesh. For its Sasan project, Reliance ADAG has recently hired US engineering consultancy firm Black & Veatch to maximise efficiency in implementation.