Reliance Energy to up Dadri unit capacity

Reliance Energy has decided to hike capacity of its proposed gas-based plant at Dadri in Uttar Pradesh to 3740 mw from 3,500 mw planned earlier.

"The decision to hike capacity has been taken keeping in mind the technical modules of the project and the desire to achieve economies of scale," Anil D Ambani, CMD, Reliance Energy, said at a press meet yesterday.

Replying to questions on the company's abortive bid for acquiring a 65 per cent stake in the Dabhol Power Company through a complex three tiered deal in a US Bankruptcy Court last week, Ambani said: " India Inc did not have a strategy while the might of US Inc was pitted against Reliance."

Ambani made it clear that the Reliance group was interested in the project but it was up to General Electric and Bechtel, who had acquired Enron's 65 per cent stake, to articulate the way forward.

Meanwhile, talking on the company's results, Ambani said: "The growth in Reliance Energy's net profit has been achieved after making a provision of Rs 90 crore during the year ended March 31, 2004 towards future contingencies as a measure of financial conservatism.

The company achieved sales of electrical energy of a record 6118 million units during the year, against 5880 million units in the corresponding previous period, an increase of 4.00 per cent.

Energy sales during the year were Rs 2386 crore against Rs 2297 crore in the corresponding previous year. During the year, interest expenditure decreased by 8.00 per cent to Rs 70 crore owing to pre-payment/refinancing of higher cost debt during the period.