Reliance Energy Surges Ahead on Powergrid Deal

Power Grid Corporation of India (PGCIL) selected Reliance Energy (REL) as a joint venture partner through international competitive bidding for setting up the transmission lines for the Parbati and Koldam hydro-electric projects in Himachal Pradesh and two projects under the Western Region System Strengthening Scheme-II (WRSS-II) in Maharashtra and Gujarat on a build, own, operate (BOO) basis.

These projects would entail an investment of about Rs 3,500 crore. The two companies would sign a letter of intent for the WRSS-II project and a shareholder agreement for a joint venture for the Parbati and Koldam projects soon, the reports added.

In a separate development, there was a wide spread rumor that Reliance Energy will file for a DRHP to raise $2 Billion for Reliance Power Ltd. REL may also bid for another Ultra mega Power Project.

REL also wants to hive off its EPC construction business, which fueled the rally ignoring Citigroups recommendation.