New Delhi: Reliance Power Limited has announced that the entire obligations of the Company as a Guarantor on behalf of Vidarbha Industries Power Limited (VIPL) stand fully settled resulting in release and discharge of Corporate Guarantee, Undertakings and all obligations and claims thereunder in relation to the outstanding debt of VIPL amounting to Rs 3872.04 Crore.


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Shares of Reliance Power hit the 5 percent upper circuit. At 11:02 am Reliance Power shares were trading at price Rs 32.98 apiece, higher by 5 percent from the previous closing price.


"Reliance Power has settled all disputes with CFM Asset Reconstruction Private Limited (CFM). 100% shares of VIPL have been pledged in favour of CFM against the release and discharge of Corporate Guarantee given by Reliance Power," said the company.


Meanwhile, Reliance Infrastructure Limited announced that Invent Assets Securitisation and Reconstruction Private Limited, a lender to the Company, has novated certain charged securities to recover its dues. 


"As a result, Invent ARC's entire fund based outstanding amount has been reduced to Zero. Additionally, Reliance Infra has cleared its funded outstanding dues to Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders. The Company’s external debt liability is down to INR 475 crore. Consequently, the net worth of the Company will stand at Rs 9,041 crore," it added.