Reliance Engery Ltd would aim to win contracts to build at least two ultra mega power projects , involving a investment of Rs40,000 crore, chairman of the company Anil Ambani said on 10 July.
Addressing shareholders of the company at the annual general meeting, Ambani outlined the ambition of Reliance Energy Ltd to become an all-round power player. He said that REL would focus on production of nuclear energy as well as transmission of power and would like to bid for allotment of captive coal blocks to ensure fuel supply at reasonable cost for its power plants.
On the ultra mega power projects, Ambani said that of the two UMPPs for which competitive bidding will take place later this year, REL had been pre-qualified for the final bid for Krishnanpattanam UMPP, while it has submitted its request for the Tilaiya UMPP in Jharkhand.
“The government’s initiative on ultra mega power projects represents a huge opportunity for power producers. We will target to win at least two of these projects, with an investment outlay of nearly Rs 40,000 crore,” said Ambani.
The company lost out on the Sasan UMPP in Madhya Pradesh and Mundra UMPP in Gujarat.
Saying that availibility of fuel is the biggest road block for India’s power sector, he asked the government to reform the policy framework that governs the production and supply of natural gas and coal. Ambani said the government must ensure that fuel is supplied to the power producers at a reasonable cost and that financial interests of the lenders are protected. This, he said, will ensure the success of the UMPPs.
On the transmission front, Ambani said REL will actively participate in the 14 ultra mega transmission projects, the estimated cost for which is Rs25,000 crore.
REL will amend its articles of association to include the prospect of nuclear power generation. Ambani told the shareholders that once government policies allow private players to generate nuclear energy, the company will set up a 2,000MW plant at the cost of Rs12,000 crore.