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Reliance Power exists Tiaiya UMPP for Rs 712.64

Press Trust of India  |  New Delhi 

has exited Ultra Mega Power Project (UMPP) by selling stake for 712.64 crore, which includes 600 crore in

The Anil Ambani led company completed yesterday the process of divesting its entire holding in (JIPL), set up to develop UMPP, to Jharkhand Urja Vikas Nigam Ltd (JUVNL) for 112.64 crore, as per a BSE filing today.

According to a source, also got the Bank Guarantees of Rs 600 crore released from the procurers. Thus, he said, the company exited the UMPP for Rs 712.64 crore.

The company said: "The company has transferred its entire holding of 1,49,900 equity shares of Rs 10 each, aggregating to Rs 14,99,000 held in (JIPL), a special purpose vehicle (SPV) created for development of UMPP, to Jharkhand Urja Vikas Nigam Ltd, the lead procurer, acting on behalf of procurers of "

had announced the termination of Power Purchase Agreement (PPA) of its 3,960 MW in District Hazaribagh, in Jharkhand in April 2015.

Based on tariff-based bidding managed by (PFC), Reliance Power was awarded the in February 2009.

The JIPL was handed over to Reliance Power by the PFC in August 2009. The JIPL has signed a Power Purchase Agreement (PPA) with 18 power takers in 10 states for 25 years. For fuel security, the project was allocated Kerendari BC captive coal mine block.

Ambani had announced in the company's Meeting in September 2017 that it is in talks with the procurers of Krishnapatnam UMPP to exit the project on the lines of Tilaiya UMPP.

Risk Management initiatives with respect to Tilaiya UMPP and Krishnapatnam UMPP effectively reduce future by Rs 56,000 crore. The SPV for Krishnapatnam UMPP is Coastal Andhra Power Ltd.

The main procurers of Krishnapatnam UMPP are Andhra Pradesh, Maharashtra, and

Reliance Power was awarded three UMPPs, of which Sansa was made operational.

The company's stock closed the day with 6.75 per cent gain at Rs 35.60 on BSE.

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

First Published: Thu, May 17 2018. 16:15 IST