R-Power set to get $625m loan from US Exim Bank

MUMBAI: Anil Ambani firm Reliance Power is likely to get a loan of $625 million (Rs 2,800 crore) from US Exim Bank to fund its upcoming 2,400-MW gas-based power project in Samalkot, Andhra Pradesh.

Confirming this, Fred P Hoghberg, chairman and president , US Exim Bank, told TOI, “The US Exim Bank is close to disbursing a loan of $625 million for Reliance Power plant in Samalkot. The approval should come in 4 to 6 weeks. We have already funded Reliance Power’s coal-based power project in Sasan and its mining venture.” This loan is a part of the $5-billion deal signed with Reliance Power for the purchase of USmanufactured equipment for power projects. This loan is to be disbursed because last year Reliance Power placed a $750-million equipment contract with GE for the 2,400-MW Samalkot expansion.

A Reliance Power official confirmed that the company is expecting the disbursement by next month. Reliance Power has signed a $17-billion deal with the Chinese and the US Exim Bank to fund various power projects, where the equipments are sourced from China and US. Besides the $5-billion deal with the US Exim Bank, Reliance Power has struck a deal with the Chinese Exim Bank for $12 billion.

India currently ranks first among Asian nations in the US Exim Bank’s authorizations and the bank has a total exposure of $5.6 billion in various infrastructure projects. This transaction will make India one of the largest markets for US Exim Bank as it has already approved a loan of $1.4 billion to Indian firms so far.