New Delhi: Reliance Power has exited Tilaiya Ultra Mega Power Project (UMPP) by selling stake for Rs712.64 crore, which includes Rs600 crore in bank guarantee.

The Anil Ambani led company completed yesterday the process of divesting its entire holding in Jharkhand Integrated Power Ltd (JIPL), set up to develop Tilaiya UMPP, to Jharkhand Urja Vikas Nigam Ltd (JUVNL) for Rs112.64 crore, as per a BSE filing today.

According to a source, Reliance Power also got the bank guarantees of Rs600 crore released from the procurers. Thus, he said, the company exited the UMPP for Rs712.64 crore.

The company said: “The company has transferred its entire holding of 1,49,900 equity shares of Rs10 each, aggregating to Rs14,99,000 held in Jharkhand Integrated Power Ltd (JIPL), a special purpose vehicle (SPV) created for development of Tilaiya UMPP, to Jharkhand Urja Vikas Nigam Ltd, the lead procurer, acting on behalf of procurers of Tilaiya UMPP."

Reliance Power had announced the termination of Power Purchase Agreement (PPA) of its 3,960 MW Tilaiya UMPP in District Hazaribagh, in Jharkhand in April 2015. Based on tariff-based bidding managed by Power Finance Corporation (PFC), Reliance Power was awarded the Tilaiya UMPP in February 2009.

The JIPL was handed over to Reliance Power by the PFC in August 2009. The JIPL has signed a Power Purchase Agreement (PPA) with 18 power takers in 10 states for 25 years. For fuel security, the project was allocated Kerendari BC captive coal mine block.

Ambani had announced in the company’s last Annual General Meeting in September 2017 that it is in talks with the procurers of Krishnapatnam UMPP to exit the project on the lines of Tilaiya UMPP.

Risk Management initiatives with respect to Tilaiya UMPP and Krishnapatnam UMPP effectively reduce future Capex pipeline by Rs56,000 crore. The SPV for Krishnapatnam UMPP is Coastal Andhra Power Ltd.

The main procurers of Krishnapatnam UMPP are Andhra Pradesh, Maharashtra, Tamil Nadu and Karnataka. Reliance Power was awarded three UMPPs, of which Sansa was made operational.

The company’s stock closed the day with 6.75% gain at Rs35.60 on BSE.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.