China Datang will help RPower to develop its coal mines including investments and also provide O&M services to the Indian company's plants
Mumbai: Reliance Power on Friday said that it has signed an agreement with China Datang Corp for a strategic partnership to develop and operate power and energy projects both here as well as overseas, making it the first partnership between the two countries in the power sector, reports PTI.
The agreement is between China Datang Overseas Investment Co (CDTO), a wholly-owned subsidiary of China Datang Corporation (CDT).
The partnership envisages cooperation in Reliance Power's three coal mines in South Sumatra, Indonesia to develop coal mines including investments in mines; to develop transportation infrastructure for these mines apart from off-taking coal from these mines.
Under the agreement CDTO will also provide operations and maintenance (O&M) services to RPower plants in the country and other identified markets.
Commenting on the development, Reliance Power said, "this is an important milestone in our move towards becoming the country's largest private sector integrated power and resources company. This will help us 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."
China Datang said, "the partnership with RPower provides us a platform to expand our footprints in emerging markets like India and Indonesia, which hold enormous business opportunities for us."
Reliance Power has the largest portfolio of power projects in the private sector based on coal, gas, hydro and renewable energy, with an operating portfolio of 1,540 mw.
The company also claims to have the largest domestic captive coal reserves in the private sector, estimated at over two billion tonnes, apart from three coal mines in Indonesia.
A Fortune 500 company with assets over $83 billion, CDT has a generating capacity of 1.1 lakh mw which is more than 50% of India's total generation, and is one of the large-scale power generation groups in China.