Reliance Power shares fall after CAG report

Shares in Reliance Power fell more than 6% on Friday after the Comptroller and Auditor General (CAG) said the company unduly benefited from a government decision allowing the power producer to use surplus coal from its captive block for another project it was not meant for.

Shares in Reliance Power fell more than 6% on Friday after the Comptroller and Auditor General (CAG) said the company unduly benefited from a government decision allowing the power producer to use surplus coal from its captive block for another project it was not meant for.

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Reliance Power, controlled by Anil Ambani, is developing a 4000 MW project at Sasan in Madhya Pradesh and was allotted captive blocks to fuel this project.

The company later received government approval to use coal from these blocks for another power project being developed by the company.