Reliance Industries plans to invest Rs 10,000 crore in new and existing power projects. The company aims to bid for an additional 2,000 mw of power projects in the country.
Briefing analysts at the companys analysts conference in Mumbai recently, the Reliance top brass led by managing director Anil Ambani and chairman D V Kapur said nearly $200 million will be invested in the three independent power projects over the next five years.
The three projects are at Patalganga, Bawana and Jamnagar and will generate power of 1,331 mw. The total projects cost is estimated at $1.35 billion with a debt-equity ratio of 70:30.
Out of the three projects, the company said power purchase agreements (PPA)had been signed only for the Patalganga project, while the one for Bawana was on the anvil. Reliance Industries will contribute 10-15 per cent of the total project cost and expects equity returns of 25 per cent from its investment.
Reliance is also setting up 400 mw of captive power capacities at Jamnagar.
The company already has captive power of 85 mw at Patalganga and 45 mw at Naroda, the centre of the textiles division at Ahmedabad. Feedstock for most power plants will be internally sourced. The Jamnagar plants can either use naphtha or fuel oil, while Patalganga is based on naphtha.
Reliance also has an option to use gas, from its gas fields at Panna, Mukta and Tapti. While Panna and Mukta have already started production, Tapti will start production from June this year. The company is also negotiating with the Gas Authority of India Ltd for selling its gas.
The projects will be implemented by Reliance Power, the subsidiary floated by RIL. RIL will hold 26 per cent stake in Reliance Power and the rest will be held by institutions and public.