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Reliance to manufacture power equipment

RADAG will soon make a major foray into manufacturing of power equipment in cooperation with a global major, chairman Anil Dhirubhai Ambani said.

business Updated: Jan 06, 2008 12:43 IST

The Reliance Anil Dhirubhai Ambani Group (RADAG) will soon make a major foray into manufacturing of power equipment in cooperation with a global major, chairman Anil Dhirubhai Ambani said New Delhi on Sunday.

"We are currently in dialogue with two or three global majors," Ambani said while announcing the $2.75-billion public offering of group company Reliance Power, touted as the country's largest.

The mega public offer has earmarked 30 per cent of the shares for retail investors, who get a discount of Rs 20 per share.

The offer, opening on January 15 and closing on January 18, will be made in a band of Rs.405-450 per share. The net issue would constitute 10.1 per cent of the post-issue paid up capital of the company.

"In the next few months you will hear some news on this. We are progressing fast on manufacturing of power equipment."

Reliance Power, which is an associate of Reliance Energy, was in November awarded the 4,000-MW Krishnapatnam power project, with the lowest bid for a tariff of Rs 2.33 per unit among all qualified bidders.

Another major project of the company is the 4,000-MW Sasan power project in Madhya Pradesh, awarded in August.

Ambani said one of the biggest constraints he faced for large and small power projects is the availability of quality equipment - not just technology but also in pricing, competitiveness and deliveries.

He said around 28,000 MW of power generation was in the pipeline within the group, to be executed within the next 4-5 years.

"This is the largest portfolio of power generation within a group and geographical area anywhere in the world. In fact, under the 11th plan period (2007-12), the government has envisaged adding 80,000 MW of power," Ambani said.