The Anil Dhirubhai Ambani Group (ADAG) plans to make Reliance Power Ltd a global power utility behemoth. Apart from the proposed Rs 110,000 crore worth of investments being pumped into setting up 28,000 megawatt of power generation capacities in India, it is also looking at projects in Singapore and the Middle East.
"While China has added 70,000 MW power generation capacities in the first half of 2007, India is planning to add a similar amount over the next five years," said Anil Ambani during Reliance Power IPO's road show in Ahmedabad on Saturday.
"The potential for power is huge in India and the 28,000 MW in pipeline are only a start for the company. We will continue to add more new projects in India and outside in the coming years," claimed Anil.
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With Reliance Power being made the vehicle for all new generation projects, what will happen to Reliance Energy, the already listed electricity utility company of the group?
“Reliance Energy will continue to benefit from the growth in Reliance Power as it will have a 45 per cent stake in the latter," was Anil's answer at the press briefing. In fact, Reliance Energy has been one of the top performers on the Indian bourses recently, he added.
Reliance Power is also aiming for nuclear power generation, if the government allows private companies to foray into the sector. The company currently has 13 power projects aggregating to 28,200 MW of power, which is coal-based, gas-based and hydroelectric in nature.
"We are ready to foray into nuclear power generation, if the government policies favour private participation. We have also trained close to 100 personnel for this purpose as we don't want to miss out on capitalising this opportunity as and when it comes," said Anil. For developing these power projects, the company is coming out with the biggest IPO in Indian capital market of 26 crore equity shares of Rs 10 each raising Rs 10393 crore to Rs 11563 crore, depending on the price band on which the allotment is made.
"We will be investing more than Rs 1,10,000 crore for developing these power projects," added Ambani.
According to Ambani, the main challenge, which can delay execution of these projects is talent availability and power equipment availability.
"Since the country is currently going through shortage of power equipment, the company would also like to enter into the sector and have started discussions on the front," Ambani said.
The company has won two ultra mega power projects of 4000 Mw each in Sasan, Madhya Pradesh and Krishnapatnam in Andhra Pradesh.
Source : Sify.comLabels: Anil Ambani, reliaall new generation projects, Reliance Power aims for a global presence, Reliance Power IPO, ultra mega power projects |
