| Reliance Power Limited | |
| Type: | Public |
| Traded As: | |
| Founder: | Dhirubhai Ambani |
| Location: | DAKC, Navi Mumbai, India |
| Key People: | Anil Ambani Raja Gopal Krotthapalli |
| Industry: | Electric utility |
| Products: | Electrical power Natural gas |
| Services: | Electricity generation and distribution natural gas exploration, production, transportation and distribution |
| Revenue: | [1] (2021) |
| Operating Income: | (2021) |
| Net Income: | (2021) |
| Assets: | (2021) |
| Equity: | (2021) |
| Num Employees: | 1300+ (2021)[2] |
| Parent: | Reliance Anil Dhirubhai Ambani Group |
| Homepage: | reliancepower.co.in |
Reliance Power Limited (R-Power), formerly Reliance Energy Generation Limited (REGL) is a part of the Reliance Anil Dhirubhai Ambani Group. It was established to develop, construct, operate and maintain power projects in the Indian and international markets. Reliance Infrastructure, an Indian private sector power utility company and the Reliance ADA Group promote Reliance Power. The present CEO of Reliance Power is K. Raja Gopal since 2 May 2018.[3]
The company was the sole distributor of electricity to consumers in the suburbs of Mumbai but in 2017 they sold Mumbai operation to Adani Power. It also runs power generation, transmission and distribution businesses in other parts of Maharashtra, Goa and Andhra Pradesh. With its subsidiaries, it is developing 13 medium and large-sized power projects with a combined planned installed capacity of 33,480 MW.
Reliance Natural Resources merged with Reliance Power in 2010, shortly after its initial public offering.[4] As of March 2018, Reliance Power has 50 subsidiaries. In Fortune India 500 list of 2019, R-Power was ranked as the 176th largest corporation in India with 9th rank in 'Power sector' category.
The company was incorporated on 17 January 1995 as Bawana Power Private Limited and changed its name to Reliance Delhi Power Private Limited in February 1995. Its name was changed to Reliance Energy Generation Limited in March 2004, and finally to Reliance Power Limited in July 2007.[5]
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.
There is only one operational Renewable Energy (RE) project. All the rest are pending at various stages; some may have been shelved formally or informally. The projects are:
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.
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,[10] 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.[11] The loan will also enable quicker access to the bank's long-term dollar loans. Reliance Power signed a pact with the US's General Electric Co. (GE) worth 100 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.[12]
In 2007, Reliance Power issued a red herring stating an intention to go public with an IPO. 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.[13] The Securities and Exchange Board of India, the organisation which regulates activity in the Indian stock market, placed some restrictions based on a complaint about the formulation of the IPO.[14] 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.[15]
The IPO opened on 15 January 2008 and attracted $27.5 billion of bids on the first day, equivalent to 10.5 times the stock on offer, thereby creating India's IPO record. The upper cut off price for the bid was ₹ 450[16] A media report pointed out that, if the company's stock price were to cross ₹650–700, Anil Ambani would go past L. N. Mittal to become the richest Indian.[17] "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.[18]
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 first day, the stock traded at a value that was 17 percent lower than its issue price of ₹450.[19] 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.[20]
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.[21]
United Nations issues carbon credits to companies that employ advanced technologies in reducing carbon emission.[21]
These carbon credits can then be sold to those companies that are emitting more than their statutory emission.[21]