Reliance Energy Ltd (REL) and Tata Power Company Ltd (TPC), the country?s two leading private power sector utilities will together add a whopping 22,477 mw of power to the National Grid during the 11th Plan period (2007-12).
This translates into 28% of the total 80,000 mw capacity-addition planned by the Centre during the 11th Plan period. According to industry insiders, this may be the single largest ever capacity-addition by private sector power utilities, eversince the segment was thrown open to private capital.
According to information gathered by FE, Reliance will add the highest 16,680-mw capacity during the 11th Plan compared to its existing capacity of 941 mw. The new projects lined up by REL are the 1,200 mw, coal-fired Rosa power project and the 7,480 mw, gas-fired Dadri Power Project both in Uttar Pradesh, the 4,000 mw, coal-fired, Sahapur Power Project in Maharashtra and the 4,000 mw, coal-based, Sasan Ultra Mega Power Project.
Similarly Tata Power, which has an installed capacity of 2,379-mw and it would be adding an additional 5,797 mw during the Plan period. This includes the implementation of the 4,000 mw, coal-fired Mundra UMPP, 1,050 mw Maithon Power Project, 250 mw Trombay Power Project, 120 mw Haldia Power Project which will run on gas and 240 mw captive power plant of Tata Steel.
According to industry watchers, REL?s and TPC?s commitment towards the power sector shows the renewed confidence of private players in the power sector reforms. Both the companies are in the process of shedding the image of pure play power utilities.
While REL is branching into new areas such as real estate, Tata Power is projecting itself as an end-to-end provider of power related services including generation, transmission and distribution.
?After the MNC power utilities pulled out of the country, the commitment of domestic companies towards generation, transmission and distribution augur well for the sector. This sounds good against the backdrop of the country missing the capacity-addition target during the 10th Plan period?, an industry insider said. Against the 41,100 mw target projected during the 10th Five- Year Plan, the country could achieve only 30,641 mw or 75% of the target.
While Tatas has clocked a net sales of Rs 1,511.48 crore for the quarter ended June 2007, netting a profit of Rs 190.20 crore, REL has reported a net sales of Rs 1,624.01 crore during the same quarter and posted a net profit of Rs 221.56 crore.