Reliance Power signs $8.3-b deal with Shanghai Electric

In the biggest deal yet between a Chinese and private Indian company, Reliance Power has given a $8.3-billion contract to Shanghai Electric Group Co Ltd (SEC) for supply of 36 coal-fired thermal power generation units, spare parts and related services over a 10-year period. This takes the total deal size between Reliance Power and the Chinese power equipment maker over the past couple of years to $10 billion.

SEC will supply boiler, turbine and generator packages for 30,000 MW capacity of coal-based power at six plants including the 3,960-MW ultra mega power project at Krishnapatnam, the 5,940-MW project in Chitrangi, and the 3,960-MW project in Tilaiya.

The project is being financed by Bank of China, China Development Bank, the Export-Import Bank of China and Industrial and Commercial Bank of China. The agreement with the Chinese banks allows Reliance Power to get financing for importing Chinese equipment for up to $12 billion.