Reliance Infra units to recover Rs 28,483 cr of regulatory assets in 4 yrs

BSES Yamuna Power and BSES Rajdhani Power, joint venture subsidiaries of Anil Ambani-promoted Reliance Infrastructure (R-Infra), will over four years recover regulatory assets worth Rs 28,483 crore, said R-Infra on Friday.

 

The Delhi Electricity Regulatory Commission (DERC) has recognised the assets till July 31, 2025, while the Supreme Court on August 6 gave its judgment on writ petitions and civil appeals BSES Yamuna Power and BSES Rajdhani Power had filed in 2014. A regulatory asset is an item on a company’s balance sheet that represents a future right to recover costs from customers, as approved by a regulatory body.

 

DERC may propose a tariff revision and a four-year liquidation plan for the company to recover regulatory assets. Consumers will bear the cost under the revised rates. “However, the court has directed that there should be no tariff shock, so DERC has to see how to go about it,” said a source familiar with the development.

 

Additionally, R-Infra subsidiaries owe about Rs 21,000 crore to Delhi’s power companies. “If the Delhi government agrees to adjust that amount, the remainder can be recovered through tariff revision by DERC but this depends on several conditions,” said the source.

 

The company’s petitions challenged a non-cost reflective tariff, unlawful creation of regulatory assets and non-liquidation of regulatory assets, R-Infra had said.

 

After hearings involving state governments and state Electricity Regulatory Commissions (ERCs), the Supreme Court issued guidelines for handling regulatory assets and directed their recovery. 

 

It disposed of writ petitions and civil appeals filed by BSES discoms, and set 10 “sutras” (guidelines) to examine the issue relating to regulatory assets, their position in the regulatory regime for the determination of tariff, the duties and accountability of the regulators (the ERCs), and the powers of the Appellate Tribunal for Electricity (APTEL).

 

The court gave nine directions to ERCs and APTEL for cost-reflective tariff determination, creation and amortisation of regulatory assets, and regulatory oversight by APTEL to monitor implementation of directions by ERCs.

 

R-Infra has a 51 per cent stake in BSES Yamuna Power and BSES Rajdhani Power each. The rest of the ownership (49 per cent) in both the firms is with the government of the National Capital Territory of Delhi.

 

R-Infra posted a profit (attributable to owners of the parent company) for the first quarter of FY26 of Rs 59.84 crore against a loss of Rs 233.74 crore incurred in Q1 FY25.

 

The company’s revenue from operations in Q1 FY26 stood at Rs 5,907.82 crore, down 17.86 per cent from the previous year. Expenses in the quarter stood at Rs 6,469.81 crore, down by 4.84 per cent.