Mumbai: Reliance Power (RPower) is looking at inorganic expansion by buying stressed thermal power projects under resolution under the insolvency and bankruptcy code, said Reliance Group chairman Anil Ambani at the company’s annual general meeting (AGM) today.
Thirty-four stressed power projects account for about ₹ 1.74 trillion of the ₹ 10.3 trillion non-performing assets (NPAs) in the Indian banking system. A few of these power plants have been declared bankrupt by their lenders and can be bought out by interested parties under a competitive bidding process.
Given the precarious positioning of the domestic thermal power sector, Ambani said the company’s key growth paths going forward would be in undertaking operational and maintenance contracts of stressed power projects and expanding the mine development operations business.
Reliance Power operates three coal-based power plants in Sasan (Madhya Pradesh), Rosa (Uttar Pradesh) and Butibori (Maharashtra).
On Tuesday, Reliance Power shares fell 4.44%, or ₹ 1.55, to ₹ 33.35 on the BSE, tracking the benchmark Sensex that lost 0.78%, or 294.84 points, to end the day at 37,290.67 points.