Reliance Power enters into Inter-Creditor Agreement with lenders

Mumbai: Reliance Group subsidiary Reliance Power on Friday said that it has entered into an Inter-Creditor Agreement (ICA) with six lenders for resolution of the company's debt.

According to Reliance Power, the ICA was signed on July 6, 2019. The agreement has been signed under the framework of the Reserve Bank of India's (RBI) Circular of June 7, 2019.

"Reliance Power has now achieved standstill for 180 days as per the ICA. According to the RBI Circular, the Resolution Plan of Reliance Power is to be implemented within 180 days," the company said in a statement.

"All 6 lenders of Reliance Power's subsidiary Vidarbha Industries Power Limited (VIPL) 600 MW Butibori Power Project near Nagpur in Maharashtra, have also signed ICA giving VIPL a 180-day timeframe to implement a resolution plan," it said.

On Thursday, Reliance Infrastructure (RInfra) said that its 16 lenders have signed the ICA.

In a regulatory filing, the company also said that it aims to be a "zero debt" firm by the year 2020.

Reliance Infrastructure has already announced the sale of its Delhi-Agra