Reliance Power cordoned off Japan's JERA for the Bangladesh energy project for Rs 835 crore

NEW DELHI: Power of trust ( R-Power ) has cornered the important Japanese energy JERA as a 49% partner for its 750 MW gas energy project in Meghnaghat in Bangladesh, a measure that will make the company led by Anil Ambani reduce its debt to US Exim Bank for Rs 835 crore

R-Power will hold 51% stake in the joint venture for implementing the project with one of Japan’s largest power utilities of Japan. On Sunday, the company in Dhaka signed PPA (power purchase agreement) and land lease agreement with BPDB ( Bangladesh Energy Development Board ), gas supply agreement with Titas Gas, a subsidiary of state-owned Petrobangla, and implementation agreement with the Ministry of Energy, Energy and Mineral Resources of Bnagladesh.

R-Power had signed the MoU for the project in Dhaka during PM Narendra Modi’s visit to June 2015 Bangladesh. The MoU envisages setting up a 3,000-MW gas-based power project in phases. The project will represent the largest IDF in Bangladesh’s power sector. It will be set up within 36 months of signing the agreements, the company said in a statement on Tuesday.

JERA was formed in April 2015 after the alliance between Tokyo electric power company & Chubu Electric Power Company to cover the entire energy supply chain — from investments in fuel sourcing & supply to power generation.

The Bangldesh project will allow R-Power to utilitse equipment it had procured from GE & other global manufacturers for the proposed gas-fired power project at Samalkot in Andhra Pradesh. These equipment still remin in orginal packing & continues to enjoy warranty from the manufacturers.

Andhra's energy project was conceptualized on the basis of gas supply projections given by Reliance Industries Ltd — the oil & gas, petrochemicals, telecom & retail conglomerate — from the company’s Andhra offshore field. R-Power shelved the Andhra power project after after the gas output from RIL’s field fell drastically short of the projection.

"This joint venture project will boost economic & industrial growth of Bangladesh & will enhance the energy security of the country with clean, green & reliable LNG-based power. We are excited to be part of the growth story of Bangladesh in partnership with JERA," the statement quoted Reliance ADAG group chairman Anil Ambani as saying.

"Together with Power of trust , JERA will realise a stable power supply & contribute to sustainable economic growth in Bangladesh," the statement quoted JERA president Satoshi Onoda as saying.