Reliance Power is all set to double the capacity of its Rosa (in Uttar Pradesh) and Butibori power plants (in Nagpur, Maharashtra) and also set up Solar photovoltaic PV plant of 300 to 400 MW in the coming years as part of its capacity expansion programme.
Chairman Anil Ambani, while addressing the 22nd Annual general Meeting (AGM) of the company in Mumbai on Tuesday (September 27), told the shareholders that the capacity of Rosa power plant will be increased to 2400 MW and that of Butibori power plant to 1200 MW respectively from the existing capacity of 1200 MW of Rosa and 600 of Butibori.
“We look at future opportunities with great caution. We will not expand just for the heck of it,” Ambani said.
He further stated that the company is also pursuing value accretive Solar opportunities which includes 300 to 400 MW Solar plant.
Ambani also informed that Reliance Power has signed an MOU with Govt. of Bangladesh for setting up 3000 MW Gas-based Power Project and FSRU for LNG imports.
This is the largest foreign investment in Bangladesh. Govt of Bangladesh has granted approval for 750 MW of Phase I at Meghnaghat near Dhaka.
Ambani said that the company has completed Phase I of Rs. 50,000 Crore capital expenditure program in record time.
Reliance Power has an operating capacity of 6,000 MW. It is also the largest private sector coal producer in the country with 20 MTPA capacity.
In April 2015 Reliance Power terminated PPA for Tilayia UMPP due to non-fulfilment of land acquisition related obligations by procurers for over 5.5 years.
This has reduced the capex by Rs. 36,000 Cr. The company has also initiated dialogue with procurers of Krishnapattnam UMPP on the lines of Tilaiya UMPP. This will further reduce the capex by Rs. 20,000 Cr.
Ambani said Reliance Power is amongst India’s top 3 leading private power generation companies. All its plants operated at an availability of over 93% in Financial Year 2016.
The 3960 MW Sasan UMPP in its first full year of operations has recorded benchmark in coal production as well as in power generation. It produced 31261 Million Units of power at 90% PLF besides producing 17.02 Million Tonnes of coal.
Ambani said that Sasan UMPP has made Madhya Pradesh power surplus and financially self sustaining. He informed the shareholders that Reliance Power has robust financials amongst industry peers.
During Financial Year 2016, company’s Revenue was up by 53%; EBITDA was up 87% and PAT jumped by 32%.
The company is conservatively leveraged with a Debt: Equity ratio of 1.77:1, one of the lowest in the power sector. He assured the shareholders that Reliance Power has one of the strongest balance sheets amongst private sector companies in the power sector
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