Reliance Power announced on Wednesday its subsidiary Sasan Power Ltd (Sasan Power) has made a bullet payment of $150 million to IIFCL, UK, fulfilling its debt obligation on December 31 2024.
The Anil D Ambani-led company said that the repayment will bolster Sasan Power’s debt coverage metrics, improve liquidity and enhance its credit rating.
Sasan Power operates a 3960 mega watt (mw) ultra mega power plant (UMPP) at Sasan, Madhya Pradesh, which according to the company is the world’s largest integrated coal-based power plant. It has a captive coal mining capacity of 20 million tonnes annually.
The plant supplies electricity to 14 distribution companies (discoms) across seven states — Madhya Pradesh, Uttar Pradesh, Rajasthan, Punjab, Haryana, Uttarakhand and New Delhi — at the lowest tariff in India of ₹1.54 per unit, benefiting more than 40 crore people.
Reliance Power added that the loan repayment further strengthens its balance sheet amid the company transitioning its focus toward the renewable energy sector, which is poised to drive future growth.
In September last year, the company had said that it has zero-debt from banks and financial institutions. Subsequently in November 2024, its another arm Rosa Power had settled its outstanding debt by payment of ₹1,318 crore to Varde Partners.
Reliance Power had recently raised ₹1,525 crore through equity-linked warrants via a preferential issue. The capital infusion is expected to position the company to capitalise on growth opportunities in the rapidly expanding renewable energy market.
