The Hindu Business Line : Reliance Energy board to meet today

RELIANCE Energy Ltd's board of directors will meet here on Tuesday to consider the resignations of six of its directors and related issues, the company told stock exchanges on Monday.

The directors had resigned last Thursday amid the ongoing feud between the Ambani brothers over ownership of Reliance Industries (RIL), which holds 50.2 per cent stake in Reliance Energy (REL).

The meeting, considered one of the most crucial in the company's history, is expected to see Mr Anil Ambani, REL's Chairman and Managing Director, persuade the six directors to reconsider their resignations, according to industry sources.

Mr Anil Ambani had earlier requested the directors to continue on the REL board.

Mr Mukesh Ambani, RIL's Chairman and Managing Director, had attended the last REL board meeting as an invitee.

The six directors believed to be close to Mr Anil Ambani - Mr Satish Seth, Executive Vice-Chairman, Mr S.C. Gupta, Mr J.P. Chalasani, Mr K.H. Mankad, Prof. J Ramachandran, an independent Director and Mr Amitabh Jhunjhunwala - resigned last week. No reasons were cited for the resignations.

In an e-mail to REL's 25,000-odd employees, Mr Anil Ambani, had said that, in the two years that he had been associated with Reliance Energy, the power company's market value had grown three-fold to more than Rs 100 crore and profit had more than doubled to Rs 367 crore. "Today, Reliance Energy is India's most valuable power-sector company," Mr Anil Ambani said in his note posted on the Reliance Energy Web site on Sunday, "For the last two years, it has ranked amongst the top three best-performing Sensex scrips."

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