New Delhi, June 23 (IANS) Reliance Power Chairman Anil Ambani on Tuesday said that the company’s focus will be on value accretive growth opportunities while remaining financially conservative and capital light.
“R-Power’s focus will be on value accretive growth opportunities while remaining financially conservative and capital light — O&M services for power plants, MDO services for coal mines and recently launched commercial coal mining opportunities,” Ambani said at the 24th Annual General Meeting of the company.
He also said that the company is committed to cleaner and greener power and is undertaking capital expenditure of Rs 3,300 crore to install Flue-gas desulfurization (FGD) in its coal based plants.
Ambani said Reliance Power’s renewable projects operated with 98 per cent availability and delivered robust operating performance
He also said that all the power plants of Reliance Power remained fully operational despite facing Covid-19 and lockdown challenges.
“R-Power continues to be one of India’s top 3 private power generation companies with operating portfolio of around 6,000 MW,” Ambani told the shareholders.
Development of Phase-1 (750 MW) of gas based power project near Dhaka in Bangladesh is on track in partnership with JERA, the largest Power utility in Japan, he said, adding that R-Power concluded agreements with JERA to invest 49 per cent equity in RBLPL (Reliance Bangladesh LNG & Power Limited) on September 2, 2019.
Further, Samalkot Power has signed an Equipment Supply Contract on March 11, 2020 to sell one module for development of the Phase-1 project in Bangladesh and will help Samalkot reduce outstanding debt by nearly Rs 1,600 crore.
The company’s focus is now on the development of Phase-2 of 1,500 MW in Bangladesh, in line with the MoU signed for development of 3,000 MW gas-based projects, the Reliance Group Chairman said.
He further said that R-Power continues to remain conservatively financed, with one of the lowest debt-to-equity ratio of 2.4:1.
Ambani also informed that although RBI has allowed banks to grant moratorium for all principal and interest payments and permitted to defer recovery of interest applied on working capital facilities, but Reliance Power has not availed moratorium of debt in any of the SPVs, as the management considers availing of such moratorium to be a financial penalty.
Regarding the legal proceedings initiated against him by the Chinese banks in London and SBI in Mumbai, Ambani clarified that the loan was not for any personal borrowing but for a corporate loan which was availed by the telecom company, Reliance Communications, in the normal course of business eight years ago in 2012 from a consortium of 3 Chinese Banks — CDB, ICBC and C-EXIM — for global refinancing.
The guarantee on the basis of which the claim was made was admittedly not signed by him. In actual fact, he had only signed a power of attorney limited to executing a non-binding letter of comfort to the Chinese Banks.
As per the UK Court’s order, the final amount owed under the alleged guarantee will be assessed based on the outcome of the R-COM insolvency resolution process. In addition, he will avail of all available legal remedies in India to protect his interest, Ambani said
As regards the proceedings filed by SBI, he emphasised that this also does not relate to any personal borrowing but arose out of a guarantee given for a loan which was availed by Reliance Communications and Reliance Infratel, way back in 2016 to repay the debts of Chinese and certain other Indian Banks.
He is defending himself against these claims and firmly believes that upon the resolution of RCOM and RITL’s debt as per their resolution plans filed before NCLT, a significant proportion, if not the whole, of the said debts will stand discharged and all these matters satisfactorily resolved, the statement from the company said.
Ambani reassured fellow shareowners that none of these potential liabilities, if any, would have the slightest bearing whatsoever on the operations of the company, Reliance Infrastructure Ltd, or its bright future prospects.