Reliance Power, Reliance Infra climb up to 5% after board restructuring

Shares of Reliance Power, and Reliance Infrastructure rose up to 5 per cent in intraday deals on Tuesday after the companies announced a restructuring of their respective board of directors. Reliance Power was locked in a 5 per cent upper circuit at Rs 35.91 per share, while Reliance Infrastructure surged 4.4 per cent at Rs 265.70 per share in intraday trade. 

 

Reliance Power and Reliance Infrastructure, part of the Reliance Group, have reconstituted their boards, appointing four senior officials as directors in line with the company’s vision 2030 growth strategy, it said in an exchange filing on Monday.

 

In Reliance Power, Ashok Pal, currently chief financial officer, has been elevated to executive director. Sachin Mohapatra, whole time director and CEO of Sasan Power Ltd., and Harmanjit Singh Nagi, president of corporate development, have been appointed as additional directors.  

 

 

Further, Reliance Infrastructure has named Partha Sarma, president of group corporate development, as an additional director.  

 

The board restructuring aims to build a dynamic, young leadership team equipped to address evolving challenges and embrace new technologies, the company said.

 

The board reconstitution comes amid a regulatory storm faced by Reliance Power, as last week, India's top renewable energy agency sent a notice to Anil Ambani-run Reliance Power, asking why it should not initiate criminal proceedings after a subsidiary of the power producer submitted fake documents for a bid.

 

In early November, the Solar Energy Corporation of India Ltd (SECI) barred the power firm from participating in its clean energy project tenders for three years after it found that a unit of the company had submitted a fake endorsement of a foreign bank guarantee.

 

In June, SECI invited bids for 1 GW solar with 2 GW standalone battery storage. Reliance Power, through its subsidiary Maharashtra Energy Generation Limited (now Reliance NU BESS Limited), was among the successful bidders, offering a low Rs 3.81 per unit for battery storage, alongside JSW Energy.  

 

However, SECI later discovered that Reliance NU BESS had submitted a fake bank guarantee for the Earnest Money Deposit (EMD). As a result, the tendering process was annulled, according to SECI's official notice.

 

At 11:09 AM; the shares of Reliance Infrastructure were trading 4.48 per cent higher at Rs 265.70a piece. By comparison, the BSE Sensex was down 1.22 per cent at 78,284 level.