A Big Deal

After Mukesh Ambani acquired a stake in the East India hotels, would Anil Ambani, Chairman, Reliance Power be far behind? He recently secured $16 billion in credit to fuel his plans for Reliance Power by signing a mega equipment supply and financing deal with Shanghai Electric and then followed it up by signing yet another arrangement with GE and US Exim Bank. According to the deal, Shanghai Electric will supply 36 boiler turbine generators worth $ 10 billion to R-Power for its 30,000 MW power plants over the next three years. Interestingly, Chinese banks are in agreement to provide a $12 billion credit line to finance the equipment supply. Turbine equipment worth $ 750 million will be supplied by GE for R-Power’s 2,400 MW gas based plant in Samalkot, Andhra Pradesh. Financial support worth $ 5 billion will be provided by US Exim Bank. Work on the project was initiated almost one and a half years ago and after intensive brainstorming with the Mayor of Shanghai and Shanghai Electric Brass, a mutual agreement on exploring a manufacturing JV was agreed upon!