Reliance Power Settles ₹3,872 Crore Obligation
Reliance Power has successfully resolved debt of ₹3,872 crore, a key move to improve its financial stability. The company acted as guarantor of Vidarbha Industries Power Limited (VIPL), through this transaction released all company guarantees and duties relating to VIPL’s outstanding debts As part of the transaction, Reliance Power committed 100% of VIPL to CFM Asset Reconstruction, and caused the company to discontinue easy guarantees offered.
The move is part of Reliance Power’s broader efforts to manage and restructure its investment commitments. The elimination of these obligations has allowed the company to enter banks and financial institutions with zero credit. This financial performance is critical for a company that has been trying to strengthen its balance sheet and restore investor confidence.
The restructuring had a positive impact on Reliance Power’s stock performance, with shares rising 5%, reaching the upper circuit on 18 September 2024 .
This development is an important milestone for Reliance Power, especially as it continues to explore new opportunities, such as the recent agreement for a 500 MW battery storage project through SECI’s e-Rivers auction.
