Reliance Power to acquire stressed assets for inorganic growth
MUMBAI: Anil Ambani-controlled Reliance Power — which operates a 5,945 MW thermal and renewable power portfolio — may look at acquisitions as the stress in generation across coal, gas and hydro segments presents opportunities.
Addressing the company’s general meeting on Tuesday here, Anil Ambani said inorganic asset acquisitions of stressed thermal assets — through resolution process by lenders or under NCLT — is one of the growth opportunities for Reliance Power.
Operations and maintenance services for stressed power projects undergoing implementation of resolution plan as well as development-cum-operation of coal mines are the other growth opportunities, he added.
Reliance Power currently operates 3,960 MW coal-based Sasan Ultra Mega Power Project in Madhya Pradesh and 1,200 MW coal-based Rosa Power Plant in Uttar Pradesh as well as coal and wind projects in Maharashtra and two solar plants in Rajasthan.
All of its capacity is tied up in power purchase agreements (PPAs) and operated at around 85 per cent capacity which is above the national average of 63 per cent in FY18.
Reliance Power has received in-principle financial sanction from the Asian Development Bank for $583 million during FY18 for its 750 MW power project in Bangladesh and expects to close financing by end of FY19.
The first phase of the project is expected to start commercial operation by March 2020 and will boost the company’s top-line and bottom-line , Ambani said.