The Hindu Business Line : Reliance Energy may seek shareholders' nod for 10 million more shares

RELIANCE Energy Ltd (REL) proposes to seek shareholders' permission to issue 10 million new shares at its annual general meeting. Mr Anil Ambani, Chairman and Managing Director, REL, told presspersons on Friday that the company may approach international markets with a GDR or ADR issue for raising capital to fund its expansion plans.

Mr Ambani said Reliance Energy has decided to hike capacity of its proposed gas-based plant at Dadri in Uttar Pradesh by 240 MW to 3,740 MW. He also reiterated his plan to set up wind energy plants of 500 MW, announced at the company's extraordinary general meeting.

"We have decided to increase the capacity of the proposed gas-based plant at Dadri by 240 MW as it will have economy of scale configuration and will be easy for the company to go for it in 4-5 phases," Mr Ambani said.

Tenders for gas supply and international inquiry of equipment has been floated for the Rs 11,000-crore project and the company is talking with banks for finances. REL will focus on new generation and distribution assets in special purpose vehicles apart from power trading in the future, Mr Ambani said.

REL would make a capital expenditure of Rs 3,500 crore for modernising its Delhi distribution network. This would include replacing about million meters with electronic meters and setting up distribution network at about 518 unauthorised colonies.

REL has also invited bids for setting up of 500 MW wind farm plants, which would be based on tariff-based competitive bidding, adding that the tenders would close at the end of this month. It has identified Karnataka, Maharashtra, Rajasthan and Gujarat as prospective States for setting up these plants.

Mr Ambani said the company has also called for bids for setting up a `flue gas desulphurisation' unit as part of its environment protection policy.

The Supreme Court had recently ordered the company to set up the FGD at its 500-MW coal-fired Dahanu unit. The company has also called for fresh bids from captive power producers for buying surplus power for its Mumbai distribution business.

He said that REL had to buy all its power for the Mumbai consumers from Tata Power, it would cost an additional burden of Rs 600 crore for its consumers. REL has open access permission from the State Electricity Board to bring in cheaper power from outside the State.

It supplies power to 22 lakh consumers in Mumbai and is the largest private sector power supplier to retail consumers.

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