|Type||Public company (BSE: 532939)|
|Headquarters||Navi Mumbai, India|
|Key people||Anil Ambani (Chairman)|
|Services||Electricity generation and distribution
natural gas exploration, production, transportation and distribution
|Revenue||18.92 billion (US$290 million) (2011)|
|Net income||7.6 billion (US$120 million)(2011)|
|Parent||Reliance Anil Dhirubhai Ambani Group|
Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group. It was established to develop, construct and operate power projects in the domestic and international markets. Reliance Energy Limited, an Indian private sector power utility company along with the Anil Dhirubhai Ambani Group promotes Reliance Power.
Along with its subsidiaries, it is presently developing 13 medium and large-sized power projects with a combined planned installed capacity of 33,480 MW.
The company was incorporated in January 1995 as Bawana Power Private Limited and changed its name to Reliance Delhi Power Private Limited in February 1995. Later, its name was changed to Reliance Energy Generation Limited in March 2004, and finally to Reliance Power Limited in July 2007.
The company website identifies project sites broadly to be located in western India (12,220 MW), northern India (9,080 MW) and northeastern India (4,220 MW) and southern India (4,000 MW). They include six coal-fired projects (14,620 MW) to be fuelled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fuelled primarily by reserves from the Krishna Godavari basin (the "KG Basin") off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand.
Ultra Mega Power Projects
- Krishnapatnam Ultra Mega Power Project, AP --- 4000 MW
- Sasan Ultra Mega Power Project, Singrauli MP – 4000 MW
- Tilaya Ultra Mega Power Project, Jharkhand ------ 4000 MW
Thermal & Gas Based Power Project
- Dadri Power Project ------------- 7480 MW
- Chitrangi Power Project -------- 3960 MW
- Samalkot Power Project ------- 2400 MW
- Raghunathpur Power Project – 1200 MW
- Hisar Power Project ------------- 1200 MW
- Rosa Power Project -------------- 1200 MW
- Paricha Power Project ---------- 1200 MW
- Yamunanagar Power Project – 600 MW
- Butibori Power Project ----------- 600 MW
- Kalai 2 Power Project ----------- 1200 MW
- Siyom Power Project ------------ 1000 MW
- Tato 2 Power Project-------------- 700 MW
- Emini Power Project--------------- 500 MW
- Amulin Power Project-------------- 400 MW
- Urthing Sobla Power Project---- 400 MW
- Mihundon Power Project---------- 400 MW
- Solar Thermal Power project------125 MW
- PV solar power Project-----------40 MW
- Vashi Wind Power Project----------45 MW
Order to Shanghai Electric
Anil Dhirubhai Ambani placed a single order for $8.3 billion with Shanghai Electric Group Company (SEC) for buying 36 coal-fired thermal power generation units, spare parts and related services over a 10-year period. This took the total deal size between Reliance Power and the Chinese power equipment maker over the past couple of years to $10 billion, making it the largest contract between a private Indian company and a government-owned Chinese firm.
While Reliance Power has also given a $2.2 billion deal to US-based General Electric, the agreement signed with SEC is on a different plane. The Chinese company will supply boiler, turbine and generator packages for up to 30,000 MW capacity of coal-based power at six plants, including the 4000 MW ultra mega power project in Krishnapatnam, the 3960 MW Project in Chitrangi and the 4000 MW Power Project in Tilaiya.
Loans from Exim bank
Reliance Power Ltd. signed an agreement with the US Export-Import Bank in 2010 for a $5 billion loan to finance power projects. The loan will finance 900 megawatts of renewable technologies such as solar and wind energy, as well as up to 8000 MW of gas-based power generation technology, the Indian company said in a statement. This $5 billion agreement is in addition to the $917 million already approved by the Ex-Im Bank for Reliance Power's coal-fired power plant at Sasan in central India.
The agreement will allow Reliance Power access products and services at competitive rates and help create manufacturing and services jobs in the US The loan will also enable quicker access to the bank's long-term dollar loans. Reliance Power signed a pact with the U.S's General Electric Co. (GE) worth INR100 billion ($2.2 billion) to implement a 2400 MW power plant. The plant will be located in the southern Indian town of Samalkot and the pact was signed during the visit of President Barack Obama.
Initial public offering and controversies
On 15 January 2008, the company attracted $27.5 billion of bids on the first day of its initial public offering (IPO), equivalent to 10.5 times the stock on offer, thereby, creating India's IPO record. The upper cut off price for the bid was Rs. 450 The proposed IPO was to fund the development of its six power projects across the country whose completion dates are scheduled from December 2009 to March 2014.
A media report suggested that, if the company’s stock price were to cross Rs. 650–700, Anil Ambani would go past L. N. Mittal to become the richest Indian. "It is a reflection of world community in the future of India... Investors seem to be confident in the future of Indian economy," Indian Finance Minister, P. Chidambaram told the media about the IPO.
The Securities and Exchange Board of India, which is an organisation that regulates the activity in the Indian stock market, placed some restrictions based on a complaint about the formulation of the IPO. The complaint also resulted in a public interest litigation being filed against the company. However, the Supreme Court of India passed a ruling that the IPO would go ahead even if any order is passed by any Indian court against the venture.
Reliance Power debuted on the stock markets on 11 February 2008. However, the markets were still reeling after the January 2008 stock market volatility, and concerns over speculation that the issue was overpriced sent the stock plummeting soon after its listing. At the end of the day, the stock traded at a value that was 17 per cent lower than its issue price of Rs. 450 . Investors who were betting on the stock reaching 1.5 or even twice its issue price lost a fortune in the process. On 25 February, in an effort to mitigate investor losses, Reliance Power decided to issue 3 bonus shares for every 5 shares held.
On 2 February 2011 United Nations registered Reliance Power's Sasan Power Plant to be eligible for earning carbon credits followed by Krishnapatanm Ultra Mega Power Project and Tilaiya Ultra Mega Power Projects. United Nations issues carbon credits to companies which employs advanced technologies in reducing carbon emission . These carbon credits can then be sold to those companies that are emitting more than their statutory emission limits.
- "Anil Ambani mulls merging Reliance Power, RNRL". Reuters. 2 July 2010. Retrieved 2 July 2010.
- "Reliance Power Limited: Private Company Information". Business Week. Retrieved 16 January 2008.
- "US Exim Bank to fund Reliance Power’s solar expansion". The Times of India. 17 April 2012. Retrieved 22 June 2012.
- JOHN SATISH KUMAR (8 November 2010). "Reliance Power Secures Loan, Signs Deal with GE, Others". Wall Street Journal. Retrieved 22 June 2012.
- M.C. Govardhana Rangan, Archana Chaudhary (15 January 2008). "Reliance Power Record IPO Gets $27.5 Billion of Bids". Bloomberg. Retrieved 15 January 2008.
- Noronha, Paul (5 January 2008). "Reliance Power set to raise over Rs 10,000 cr via IPO". The Hindu Business Line. Retrieved 16 January 2008.
- Times News Network (16 January 2008). "father would have been a happy man: Anil Ambani on REPL IPO". The Economic Times. Retrieved 16 January 2008.
- Press Trust of India (15 January 2008). "Reliance Power IPO subscribed 10 times in 4 hrs". The Hindu Business Line. Retrieved 16 January 2008.
- Layak, Suman (28 December 2007). "SEBI puts curbs on Reliance Power offer". Hindustan Times. Retrieved 15 January 2008.
- ENS Economic Bureau (12 January 2008). "Reliance Power can go ahead with IPO: Supreme Court". Indian Express. Retrieved 15 January 2008.
- Hard lessons from the primary market fiasco financial scene – The Hindu
- Reliance Power offers 3:5 bonus, share cost now Rs. 269 – DNA India