Reliance Power
Encyclopedia
Reliance Power Limited a part of the Reliance Anil Dhirubhai Ambani Group, 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
.
Reliance Natural Resources has already been merged with Reliance Power in 2010.
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 fueled by reserves from captive mines and supplies from India and abroad, two gas-fired
projects (10,280 MW) to be fueled 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
.
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 ultra mega power project at Krishnapatnam, the 5,940-MW project in Chitrangi, and the 3,960-MW project in Tilaiya
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 U.S.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.
(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 organization 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 February 11, 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 February 25, in an effort to mitigate investor losses, Reliance Power decided to issue 3 bonus shares for every 5 shares held.
Reliance Energy
Reliance Infrastructure, formerly known as Reliance Energy and prior to that as Bombay Suburban Electric Supply , Its India's largest private sector enterprise in power utility and its a company under the Reliance Anil Dhirubhai Ambani Group banner, one of India's largest conglomerates. The...
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
Watt
The watt is a derived unit of power in the International System of Units , named after the Scottish engineer James Watt . The unit, defined as one joule per second, measures the rate of energy conversion.-Definition:...
.
Reliance Natural Resources has already been merged with Reliance Power in 2010.
Overview
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, it changed its name to Reliance EGen Private Limited in January 2004, to Reliance Energy Generation Limited in March 2004, and 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
North India
North India, known natively as Uttar Bhārat or Shumālī Hindustān , is a loosely defined region in the northern part of India. The exact meaning of the term varies by usage...
(9,080 MW) and northeastern India
North-East India
Northeast India refers to the easternmost region of India consisting of the contiguous Seven Sister States, Sikkim, and parts of North Bengal...
(4,220 MW) and southern India
South India
South India is the area encompassing India's states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu as well as the union territories of Lakshadweep and Pondicherry, occupying 19.31% of India's area...
(4,000 MW). They include six coal-fired
Fossil fuel power plant
A fossil-fuel power station is a power station that burns fossil fuels such as coal, natural gas or petroleum to produce electricity. Central station fossil-fuel power plants are designed on a large scale for continuous operation...
projects (14,620 MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired
Fossil fuel power plant
A fossil-fuel power station is a power station that burns fossil fuels such as coal, natural gas or petroleum to produce electricity. Central station fossil-fuel power plants are designed on a large scale for continuous operation...
projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari basin
Krishna Godavari Basin
Krishna-Godavari basin is a peri-cratonic passive margin basin in India. It is spread across more than 50,000 square kilometers in the Krishna River and Godavari River basins in Andhra Pradesh. The site is known for the D-6 block where Reliance Industries discovered the biggest natural gas reserves...
(the "KG Basin") off the east coast of India, and four hydroelectric
Hydroelectricity
Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy...
projects (3,300 MW), three of them in Arunachal Pradesh
Arunachal Pradesh
Arunachal Pradesh is a state of India, located in the far northeast. It borders the states of Assam and Nagaland to the south, and shares international borders with Burma in the east, Bhutan in the west, and the People's Republic of China in the north. The majority of the territory is claimed by...
and one in Uttarakhand
Uttarakhand
Uttarakhand , formerly Uttaranchal, is a state in the northern part of India. It is often referred to as the Land of Gods due to the many holy Hindu temples and cities found throughout the state, some of which are among Hinduism's most spiritual and auspicious places of pilgrimage and worship...
.
Power Projects
- Tilaya UMPP - 4000MW
- Krishanapatnam UMPP - 4000MW
- Sasan UMPP - 4000MW
- Dadri power plant - 8000MW
- Chitrangi power project - 4000MW
- Butibori power project - 600MW
- Rosa power plant - 1200MW
- Goa power project
- Hisar Power project - 1200MW
- Wind Power Projects - 400MW
- Hydro Power Projects - 2500MW
Order to Shanghai Electric
Anil Ambani placed a single order for $8.3 billion with Shanghai Electric Co Ltd (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 ultra mega power project at Krishnapatnam, the 5,940-MW project in Chitrangi, and the 3,960-MW project in Tilaiya
Loans from Exim bank
Reliance Power Ltd. signed an agreement with the U.S. Export-Import Bank Saturday for a $5 billion loan to finance power projects. The loan will finance Reliance Power's projects, which include 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 U.S.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 January 15, 2008, the company attracted $27.5 billion of bids on the first day of its initial public offeringInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO), equivalent to 10.5 times the stock on offer, thereby, creating India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's IPO record. The upper cut off price for the bid was Rs.
Indian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....
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
P. Chidambaram
P. Chidambaram or Chidambaram Palaniappan, sometimes written Palaniappan Chidambaram is an Indian politician with the Indian National Congress and present Union Minister of Home Affairs of the Republic of India. Previously he was the Finance Minister of India from May 2004 to November 2008...
told the media about the IPO.
The Securities and Exchange Board of India
Securities and Exchange Board of India
The Securities and Exchange Board of India is the regulator for the securities market in India.-History:It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament...
, which is an organization 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
Public interest litigation
In Indian law, Public Interest Litigation OR जनहित याचिका means litigation for the protection of the public interest. It is litigation introduced in a court of law, not by the aggrieved party but by the court itself or by any other private party...
being filed against the company. However, the Supreme Court of India
Supreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution 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 February 11, 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 February 25, in an effort to mitigate investor losses, Reliance Power decided to issue 3 bonus shares for every 5 shares held.