India's Reliance Power and China Datang form venture

NEW DELHI Fri Aug 24, 2012 4:36am EDT

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NEW DELHI Aug 24 (Reuters) - India's Reliance Power has signed a deal with China Datang Corp to develop and operate power and energy projects in India and overseas, the Indian company said in a statement on Friday.

Reliance, controlled by billionaire Anil Ambani, and the state-owned Chinese company will form a partnership to invest in and develop Reliance's coal mines in Indonesia and offer operations and maintenance services to power plants in India and other markets.

Financial details of the partnership were not released.

Reliance Power and other Indian generators have been increasingly using cheaper Chinese equipment and using Chinese funding to finance some projects.

Indian power producers have been slow to expand as fuel and funds have become scarce and cash-strapped distribution utilities buy less power because they are saddled with $35 billion in debt. (Reporting by Sanjeev Choudhary; Editing by Matt Driskill)

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