Anil Ambani Positive About Reliance Power’s Next 12 Months
Reliance Power is on track to double its power generating capacity to 5,000 MW in the next 12 months despite very challenging times, Chairman Anil Ambani told shareholders at the company’s annual general meet Tuesday.
“”Inspite of all the challenges in the power sector, we are on our way to complete the Sasan ultra mega power project (UMPP). We are committed to be leaders in power and coal mining,” Ambani said.
Ambani said that power generators were going through trying times given the unavailability of fuel, delays in land acquisition and environment clearances, and “unprecedented” rise in coal prices and depreciation in rupee.
Reliance Power has an operational capacity of 2,545 mw. Reliance Power has two projects totalling 6,400 mw stranded due to fuel issues-Krishnapatnam UMPP and the 2,400 mw-Samalkot Project, which is ready for commissioning but is yet to receive gas to fire its plant.
“We will start work on the Tilaiya UMPP shortly. We are working on resolving issues with the Krishnaptanam project and we will get it resolved,” said J.P. Chalasani, chief executive officer.
The company has stalled work at the Krishnapatnam UMPP on concerns that the steep rise in cost of imported coal will make the project unviable. CERC’s recent decision to allow companies like Tata Power and Adani Power by allowing them to get “compensatory tariff” to make up for the steep rise in imported coal prices has given Reliance Power the comfort that it may also get a favourable order in the Krishnapatnam case.
The company said that it has secured fuel supply for most of the projects and would focus on setting up units based on local coal.