Reliance Power to be granted with a loan of $625 million from US Exim Bank

Anil Ambani firm Reliance Power is likely to be granted with a loan of $625 million (Rs 2,800 crore) from US Exim Bank for funding its upcoming 2,400-MW gas-based power project in Samalkot, Andhra Pradesh. This loan is a part of the $5-billion deal signed by the bank with Reliance Power for the purchase of US manufactured equipment for power projects. Further, 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.

Reliance Power in total 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. Out of which, the company has signed the $5-billion deal with the US Exim Bank, while the company has struck a deal with the Chinese Exim Bank for worth $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 is expected to 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.