The Reliance Anil Dhirubhai Ambani Group (RADAG) will shortly announce a foray into power equipment manufacturing in co-operation with a leading global player.
While addressing a news conference in the Capital on Sunday on the $2.75-billion public offering of his group company-Reliance Power, chairman Anil Ambani said his group was in talks with two to three global equipment majors for manufacturing world class equipment.
?The co-operation could be in the form of a joint venture or sourcing of equipment like turbines and boilers. In the next few months you will hear some news on this. We are progressing fast on manufacturing of power equipment,? he said.
Ambani said one of the biggest constraints he faced for large and small power projects is the availability of quality equipment not just technology but also in pricing, competitiveness and deliveries. The proposed move would ensure large-scale availability of equipment at competitive rates to meet the ambitious targets, he said adding that around 28,000 mw of power generation was in the pipeline within the group, to be executed within the next 4-5 years.
Reliance Power, which is an associate of Reliance Energy, was in November awarded the 4,000-mw Krishnapatnam power project, with the lowest bid for a tariff of Rs 2.33 per unit among all qualified bidders. Another major project of the company is the 4,000-mw Sasan power project in Madhya Pradesh, awarded in August.
The mega public offer has earmarked 30% of the shares for retail investors, who get a discount of Rs 20 per share. The offer, opening January 15 and closing January 18, will be made in a band of Rs 405-450 per share. The net issue would constitute 10.1% of the post-issue paid up capital of the company.
The proceeds of the issue will be used for the projects like Rosa and Urthing Sobla in Uttar Pradesh, Sasan in Madhya Pradesh and Butibori and Shahapur in Maharashtra.