RIL plans power foray for retail biz

The Mukesh Ambani-owned Reliance Industries Ltd (RIL) plans to set up captive power generation capacity of around 4,000MW at an investment of Rs12,000 crore to supply power to the 6,000 outlets that its subsidiary Reliance Retail plans to open.

The Anil Dhirubhai Ambani Group, managed by Mukesh Ambani’s brother Anil Ambani, claims that this violates an existing non-compete agreement between the two business groups.

“The first of these captive units will be set up in Maharashtra,” said an RIL executive, who did not wish to be named.

The captive power units will have a unit size of around 400MW each and will generate power at a tariff of Rs2.60 per unit. RIL is in talks with Siemens Corp., Alstom, Mitsubishi Heavy Industries (MHI) and General Electric for setting up the power generation units.

Read more at Livemint.com

Anil Ambani takes over 12K cr Sasan Power

NEW DELHI: At last, the Anil Ambani-led Reliance Power Ltd has bagged the Rs 12,000 crore Sasan Power Project with an installed capacity of 4000 MW. The project would be set up in the Sidhi District of Madhya Pradesh. Power Minister Sushil Kumar Shinde transferred the shell company, Sasan Power Ltd to ADAG Chief Anil Ambani in the capital on Tuesday. This brings to an end a bitter corporate feud that unfolded after the Lanco group was initially selected as the lowest and preferred bidder to execute the Sasan Power Project. Following disqualification of Lanco, the second lowest bidder, Reliance Power Ltd matched the tariff to Rs 1.196 per unit. Sasan Power Project is the first ultra mega power project that was taken up for execution by the nodal agency, Power Finance Corporation (PFC). Now, the Reliance Power will execute six units of 660 MW each. The Power Purchase Agreement, Escrow and Hypothecation Agreements were signed between Anil Ambani’s Reliance Power and PFC. Letter of Intent (LoI) for this Project was issued to Reliance Power Ltd on August 1.

Reliance Power bags Sasan

Matches Lanco-Globeleq price.

The three months of uncertainty over the 4,000 Mw Sasan ultra mega power project is finally over. Anil Dhirubhai Ambani Group (ADAG) company Reliance Power Limited (RPL) has bagged the project after matching the tariff of Rs 1.196 per unit quoted by the original winning bidder, a consortium of Singapore-based Globeleq and Hyderabad-based Lanco Infratech, which was disqualified.

After an hour-long meeting, the empowered group of ministers (EGoM) today awarded the Rs 20,000 crore project in Madhya Pradesh — the country’s largest thermal power project — to Reliance Power.

“Sasan Power Limited had received revised offers from three bidders that included Jai Prakash Associates, NTPC Limited and Reliance Power Limited and the revised bid of Reliance Power quoting a levellised tariff of Rs 1.196 per unit was the lowest,” said Power Minister Sushilkumar Shinde, who also heads the EGoM.

The EGoM has asked Sasan Power to award RPL the letter of intent (LoI) for the project, the minister said. Sasan Power Ltd is the shell company floated by the Power Finance Corporation to pilot the Sasan project. Read more at Business Standard

Flag Tele listing on LSE soon

ADAG is expecting to recover ten times the value paid for buying the company in 2002.

Flag Telecom, a 100 per cent subsidiary of Reliance Communication (RComm), has mandated Goldman Sachs and Deutsche Bank as lead managers for the maiden initial public offering (IPO) on the London Stock Exchange.

Top sources say the bankers have valued the company at $2 billion. The IPO will be completed in the next three months. The company will divest 10-15 per cent of its equity through the IPO.

Through the IPO, the Anil Dhirubhai Ambani Group (ADAG), will be able to recover virtually ten times the value it paid for the company in 2002. It had paid $211 million to buy Flag.

Flag, which runs an international fibre bandwidth all across the globe, has announced an investment of Rs 7,000 crore to set up a new generation network which will provide high speed transmission. The cash from the IPO will be used to partly finance the ambitious project which is expected to be up and running by 2009. The new network will link to the Mediterranean to Greece, Cyprus, Turkey, Malta, Libya and Lebanon, Trans-Pacific to the US and Japan, Far East and Africa.

The 65,000 km cable network connects 40 countries across four continents and has over 200 international telcos and Internet service providers (ISPs) as its clients.

Flag has also recently completed Falcon, a $400 million fibre project which links West Asia to the rest of the world.

Flag Telecom is the second company of the Anil Dhirubhai Ambani Group after Reliance Energy which is being listed on the London Stock Exchange. Over 25 Indian companies are already listed on LSE which include ACC, Amtek Auto, Crompton Greaves, GAIL just to name a few.

A Reliance Communications spokesperson, however, declined to comment on the issue.