Reliance Industries Ltd (RIL) is understood to have put its “mega investment” plans to enter the power generation business on the backburner.
After a power-packed announcement last year to enter the coal-based and hydro power generation besides looking at power transmission and distribution, RIL chairman and managing director Mukesh Ambani chose to maintain a complete silence on this front at the company’s 37th annual general meeting in Mumbai on Friday.
“RIL has no plans to enter power generation sector,” a source close to Ambani told reporters on the sidelines of the AGM. “We had said that we would evaluate RIL’s entry into the power sector. We have examined and decided not to enter power sector.”
Stating that there was lack of clarity in the present policies on power production and coal mining, the source said that many power plants are already coming up in the country even as coal is in short supply.
A company spokesperson did not offer any comments when asked about RIL’s power plans. However, he did not deny that RIL was looking at shelving its power business plans.
At the company’s last AGM on June 18, 2010, Ambani had termed RIL’s entry in the power sector as a “game changing development.” “We are drawing up specific plans for mega-investment in this sector with clean coal-based power generation projects, hydel projects and also in nuclear power as and when it is opened up.”
The announcement to enter the power business was made by RIL shortly after the non-compete agreement was signed between the Ambani brothers last year. The elder Ambani had also announced his company’s intentions to set up an ultra mega power plant (UMPP) — projects with a capacity of 4,000 mw and above.