RIL commits gas for Reliance Energy

Anil Ambani announces Rs 68,750 crore investment plan

Reliance Industries Ltd (RIL) has agreed to supply natural gas to the proposed 3,740 MW power project of Reliance Energy Generation Ltd (REGL) at Dadri.

The project was likely to be commissioned by financial year 2008-09, Reliance Energy Chairman and Managing Director Anil Ambani said at the company's 76th annual general meeting in Mumbai today.

This is being interpreted in industry circles as a clear signal that the dispute between Ambani brothers is heading towards an amicable settlement.

Ambani also said that the company had a comprehensive plan to explore various opportunities in coal, gas, hydro and wind power generation projects with a total estimated investment of Rs 68,750 crore.

The Rs 11,000 crore power project proposed at the Dhirubhai Ambani Energy City (DAEC) near Dadri is expected to be the world's largest gas based power generation plant in single location.

Ambani said that the company had already initiated steps to set up a 12,000 MW coal-based power project in Orissa at a cost of Rs 48,000 crore.

In addition, the company has also been qualified in the internationalcompetitive bidding process for implementing the 1,000 MW Anpara "C" power project in Uttar Pradesh.

In hydro power sector , REL has recently bagged the 280- MW Urthing Sobla hydro project in Uttaranchal. The investment for this project was estimated to be Rs 1,500 crore, said Ambani.

The company is also pursuing now the implementation of up to 500-MW of wind-based power projects in phases spread across various states.

Ambani added that the company was keenly following the developments in nuclear power generation and would pursue growth opportunities at an appropriate stage.

In the power transmission sector, REL has already participated in the international bidding process of the Power Grid corporation of India Ltd., for selection of a joint venture partner for setting up of transmission lines for Parbati and Koldam hydro electric projects in Himachal Pradesh on a BOOT basis. In this project, the company anticipates an investment of Rs 750 crore.

For transmission business, the company has also applied to the Central Electricity Regulatory commission (CERC) for obtaining transmission licenses to undertake a total of seven schemes and packages for strengthening of transmission system in the western region.

It has planned an investment of about Rs 5,000 crore for undertaking transmission projects in this region.

In addition to this, the company is also exploring a comprehensive transmission network covering northern India for evacuation of power from its 3,740 MW plant in UP at an estimated outlay of Rs 2,500 crore.