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R-Power, JERA ink loan agreement with banks for new power project in Bangladesh

Capital Market 

Reliance Power and JERA Co., Inc. through their project company, are developing a new gas-fired power generation project in Bangladesh.

The project company has now signed a loan agreement for full financing totaling $642 million with a group of banks that includes the Japan Bank for International Cooperation (JBIC).

This project is to build, own, and operate a 745 MW (net output: 718 MW) natural gas combined-cycle power project in Meghnaghat, Naranganj, located approximately 40 km southeast of Dhaka.

The electricity generated will be sold under a long-term power purchase agreement with the Bangladesh Power Development Board (BPDB) for a period of 22 years from the start of commercial operation. Reliance Power and JERA have taken the initiative in promoting the project.

The project company agreed an EPC contract with Samsung C&T in July 2020. With this loan agreement, all major contracts required for the development of the Project have been completed. Going forward, Reliance Power and JERA will focus on full-scale construction and work steadily towards achieving commercial operation in 2022.

On the technical front, the stock's RSI (relative strength index) stood at 41.727. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 50-day moving average (DMA) placed at 3.30 and its 200-day moving average (DMA) placed at 2.65.

Reliance Power's consolidated net profit jumped 10.9% to Rs 40.14 crore on a 6.9 % fall in net sales to Rs 1,932.95 crore in Q1 June 2020 over Q1 June 2019.

Shares of Reliance Power lost 3.25% to Rs 3.27 on BSE. Reliance Power is a power generation and coal resources company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 31 2020. 14:02 IST
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