Reliance Power Pays USD 150 Million Debt
Reliance Power has announced that its subsidiary, Sasan Power Ltd, successfully made a bullet payment of USD 150 million to the India Infrastructure Finance Company Limited (IIFCL) on December 31, 2024. This debt repayment is a significant step for Sasan Power, as it will enhance its debt coverage metrics, improve liquidity, and likely lead to an upgrade in its credit rating, according to a company statement.
Sasan Power operates the world’s largest integrated coal-based power plant, the 3,960 MW Ultra Mega Power Plant (UMPP) located in Sasan, Madhya Pradesh. The plant is supported by a captive coal mining capacity of 20 million tonnes per annum (MTPA) and plays a critical role in India’s energy sector. It supplies electricity to 14 distribution companies (DISCOMs) across seven states—Madhya Pradesh, Uttar Pradesh, Rajasthan, Punjab, Haryana, Uttarakhand, and New Delhi. The plant’s tariff of Rs 1.54 per unit is the lowest in India, providing electricity to over 40 crore people.
Sasan Power has been consistently ranked as the best-performing power plant in India for the last seven years, a remarkable achievement that reflects its operational excellence. The company’s ability to manage costs effectively and deliver reliable power at a competitive tariff has solidified its leadership in the Indian power sector.
The debt repayment is also part of Reliance Power’s broader strategy to strengthen its balance sheet. The company has recently focused on transitioning toward the renewable energy sector, which is expected to drive future growth. Reliance Power, which operates a portfolio of 5,300 MW of power generation capacity, including the Sasan Power plant, has also raised Rs 15.25 billion through equity-linked warrants via a preferential issue. This infusion of capital positions the company to capitalize on new opportunities in the rapidly expanding renewable energy market.
Reliance Power's current net worth stands at Rs 143.93 billion, and with the enhanced equity base from the recent capital raise, the company’s net worth is expected to exceed Rs 150 billion. This strong financial position will help Reliance Power pursue its renewable energy ventures while continuing to focus on the growth and optimization of its existing operations.
With its robust balance sheet, Reliance Power is well-positioned to lead India’s energy transition and further strengthen its position in both conventional and renewable energy sectors.
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