The Hindu Business Line : BSES backs open offer by Reliance

In a statement signed by Mr K.D. Kulkarni, Director (Human Resources) on behalf of Mr S.S. Dua, acting Chairman and Managing Director, the power distribution and generation company said it was "confident that BSES will rise to new heights under Reliance's management control".

According to industry analysts, acquisition of 51 per cent stake in the company will help RIL consolidate its `influence' on the BSES board. A top official of a financial institution confided that the oil and petrochemical major was "anyway controlling the power utility''.

"RIL already holds 44 per cent in BSES and has two members on the company board. It is clear that its plans for the power sector hinge on taking over the reins of BSES. This open offer is only the most expected development," said a senior analyst.

BSES employees, however, are hopeful there will be no major changes in the day-to-day management of the company.

"Even when Reliance took over IPCL, there was no change at the ground level. We can only hope that a similar trend would be maintained here," said a senior BSES official who did not wish to be named.

Reliance has repeatedly stated that BSES will be its vehicle for power sector forays. It had also mooted a proposal to sell its Patalganga and Jamnagar power plants to BSES.

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