Reliance Energy sizzles as Haryana, UP offer power projects

In what may be the single largest engineering, procurement and construction (EPC) contract, the Haryana Power Generation Corporation has asked Relience Energy to set up a 2×600 Mw coal-based power project on a turnkey basis for Rs 3763 crore. The project will be financed in a debt:equity ratio of 80:20, with 20% of the contribution coming from the state government.The project will be implemented in a schedule of 35 – 38 months.

REL has also bagged the ‘balance of plant package’ from Uttar Pradesh Rajya Vidyut Utpadan Nigam for the 2×250 Mw extension units 5 & 6 of the Parichha Thermal Power Station, Jhansi. The value of the order is Rs 395 crore. The order for the main plant, which consists of boiler turbo-generator and civil works, was earlier awarded to Bhel.

As many as 90,645 shares changed hands in the counter on BSE. The stock had advanced ahead of this announcement; from Rs 502.10 on 25 January to Rs 513.60 by 31 January.

In late-2006, Reliance Energy, along with its consortium, recently signed a contract with the Ministry of Petroleum and Natural Gas (MoPNG) for exploration and production of four coal-bed methane (CBM) blocks – two in Rajasthan, one in Andhra Pradesh and one in Madhya Pradesh.

REL will be responsible for utilising the coal from the four blocks for power-generation. REL has major expansion plans in the power-generation segment. The company is planning a 4,000 Mw gas-based plant in Maharashtra. The company may bid for two ultra-mega projects, which have been launched by the Government of India, at Mundra and Sasan.

REL posted 22.10% growth in net profit to Rs 201.03 crore for Q3 December 2006, against Rs 164.64 crore in the corresponding period of the previous fiscal. Total income in the quarter rose 60% to Rs 1,820.34 crore (Rs 1,137.63 crore).

During the quarter, REL purchased the balance equity shares of BSES Kerala Power (BKPL) making it a wholly-owned subsidiary of the company. The company also acquired 100% shareholding in Reliance Aworld, Reliance Infrastructure Projects and Reliance Infrastructure Services. REL also purchased 51% shareholding in Reliance Energy Transmission. Consequently, all these companies have also become REL’s subsidiaries.