Reliance Power has signed a memorandum of understanding to form a strategic partnership with China Datang Corporation (CDT) represented by the China Datang Overseas Investment Company (CDTO) for development and operation of power and energy projects in India and overseas markets.
This will be first such strategic partnership between India and China in the power sector.
CDTO is a wholly-owned subsidiary of China Datang Corporation (CDT) and the major platform for CDT to seek a greater international role. CDT, with generating capacity of 105,896 MW is one of the large-scale power generation groups in China. Its generation capacity is more than 50% of India's current generation capacity. CDT is a Fortune 500 company and among the top 50 companies in China.
The strategic partnership envisages co-operation in Reliance Power's 3 coal mines in South Sumatra, Indonesia (having 2 billion tonnes of coal resources. The partnership includes development of coal mines including investments in the mine, development of transportation infrastructure for Indonesia Mines and off-take of coal from the Indonesian mines.
The co-operation includes operations & maintenance (O&M) services to power plants in India and other identified markets, including Reliance Power's own power generation units.
Commenting on the development, Reliance Power said: "This is an important milestone in our progress towards becoming India's largest private sector integrated power and resources company. We will benefit from this partnership in being able to draw from CDTO's vast talent pool of experienced O&M resources. We will also be able to deploy best operating practices for equipment sourced from China and other global suppliers. The two companies share the vision of creating intrinsic value for all stakeholders, including customers, employees and shareholders through long-term relationships."
China Datang said," Strategic Partnership with Reliance provides us a platform to expand our footprints in emerging markets like India and Indonesia, which hold enormous business opportunity for us. We believe this development is a key milestone in our journey to become a world renowned company with strong development capability, profitability and international competitiveness."
The Reliance Power stock was trading at Rs 86.35, up by Rs 2.15 or 2.55%. The stock hit an intraday high of Rs.85.40 and low of Rs 85.90 at 3.10 pm IST.