Reliance Power (R Power) has dipped 4% at Rs 111 on reports that the company’s 4,000-megawatt power project in Krishnapatnam, Andhra Pradesh state, is facing road blocks due to various reasons including a recent change in Indonesian law which mandates all parties to sell coal at market prices.
Earlier, Indonesian coal mines had the freedom to bilaterally agree coal prices with buyers. The recent change in law will impact the viability of this project as well as others that are based on imported coal, especially from Indonesia, the PTI report suggests.
The stock opened at Rs 115 and hit a low of Rs 110 on the NSE. A combined 2.38 million shares have changed hands on the counter till 1440 hours.