“Both the companies are in the advanced stage of negotiation, and the deal is likely to conclude this month,” the people cited above said.
The 45-megawatt wind power project is based in Vashpet, Maharashtra, which became operational in 2013. It has an agreement with Adani Electricity for power offtake.
Reliance Power and JSW Energy declined to comment on the development.
The proceeds from this transaction will be used to repay bank debt, they said. The 45mw-wind power plant was mortgaged with DBS Bank against a loan of ₹110 crore.
In a stock exchange notice on Thursday, Reliance Power said, “The company has settled the entire obligations with respect to its borrowings from DBS Bank in accordance with the settlement agreement dated January 05, 2024 as a result the assets of 45 MW Wind Power Project are free from the encumbrance.”The company settled ₹400 crore loans from ICICI Bank, Axis Bank and DSB Bank, as reported by ET on March 20. The three lenders jointly recovered close to 30-35% of their principal loans. In April 2023, it settled JC Flowers ARC and Canara Bank loans, according to exchange disclosures.Reliance Power’s total financial indebtedness stood at ₹765 crore as of December 31, 2023. Although most debt is settled, it owes some lenders. As per the company’s FY23 annual report, Bank of Maharashtra, Punjab National Bank, State Bank of India, US Exim, Asian Development Bank are among the other lenders.
