Mukesh firm to invest Rs 12,000 cr in power

Reliance Industries Ltd's (RIL) chairman Mukesh Ambani is powering up to meet his ambitious Rs 150,000-crore investment plan touching various sectors. Anupama Airy reports. RIL and its hunger for power

Reliance Industries Ltd's (RIL) chairman Mukesh Ambani is powering up to meet his ambitious Rs 150,000-crore investment plan touching various sectors. Reliance Utilities and Power Pvt Ltd, a subsidiary of an unlisted holding company owned by Ambani, is planning to set up power plants to produce 2,600 megawatts in additional capacity by 2014/15, involving an investment of around Rs 12,000 crore.

Notably, the investments in power, after telecoms, will mark the elder Ambani's significant expansion in another sector in which his sibling Anil Ambani's Reliance ADAG has major interests. With a non-compete agreement no longer binding the brothers after a division of family assets, business logic determines the growth plans

RIL plans to expand in the petrochemicals, oil refining, retail and telecom sectors, and power generation is essentially for captive use. Plants run by RUPPL currently generate 1,116 mw for RIL's existing units.

Sources close to RIL said the new power projects will meet the requirements of the company's projects planned over the next 3-4 years.

While an RIL spokesperson refused to comment, the sources confirmed that feasibility studies for the power projects, including the type of fuel to be used, are underway.

According to investment banking sources and brokerage houses, the new power projects will come up within Gujarat and close to the existing locations at Jamnagar, Hazira, Baroda, Nagothane and Dahej.

"Parleys are on for sourcing funds for these projects," confirmed a investment banking firm, seeking anonymity.

"Providing funds to the unlisted company is not an issue... moreover, Mukesh Ambani holds a stake in the unlisted power company," the source said.