Reliance Power subsidiary Rosa Power prepays ₹850 crore debt

Rosa Power, a subsidiary of Reliance Power, has prepaid ₹850 crore of its debt to Singapore-based lender Varde Partners, sources said.

Following Reliance Power's achievement of zero debt, Rosa Power is now on track to become debt-free.

The company aims to settle its remaining debt in the next quarter, completing the process before the end of the current financial year, they said.

Rosa Power, which operates a 1,200 MW coal-based thermal power plant in Rosa village near Shahjahanpur, Uttar Pradesh, has Varde Partners as its sole lender.

The strengthening of Rosa Power's balance sheet, along with a recent ₹1,525 crore preferential issue, will support Reliance Power in exploring new business opportunities, particularly in the renewable energy sector.

Reliance Power's board approved the preferential issue on Monday, with over ₹600 crore coming from its promoter company, Reliance Infrastructure, and the remaining ₹900 crore from Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.

This preferential issue is expected to boost Reliance Power's net worth from ₹11,155 crore to over ₹12,680 crore, maintaining its zero-bank-debt status, according to company stock marketing filing.

The proceeds will be used to expand business operations, either directly or through investments in its subsidiaries.