Reliance Power net jumps 49 per cent without generating a single MW

Anil Ambani-promoted Reliance Power has announced a 49 per cent growth in quarterly profit because of a 58 per cent rise in income that is not related to its core business activities.

R-Power, which is setting up close to 34,000 MW of power generation capacity, is yet to begin power generation from any of its plants.

Nonetheless, the company earned a total income of Rs101 crore in the September quarter, compared to Rs64 crore in the year-ago period, while net profit grew to Rs71 crore from Rs 47crore. The higher income came from treasury operations.

Last year, the company raised over Rs11,500 crore through an initial public offering. Of this, Rs4,244 crore has been utilised for financing its construction and development costs of upcoming power projects, the company said in a statement on Tuesday. It added that the company has cash and liquid balances worth Rs9,514 crore.

Commissioning activities are in advanced stage for the first phase of 600 MW Rosa project in Uttar Pradesh and synchronisation of the first unit is targeted soon. The unit is likely to commence commercial operations well ahead of its March 2010 schedule, said the press release.

Construction work has commenced for the 600 MW expansion at Rosa, and construction for the 600 mw Butibori project in Maharashtra is on schedule. Main plant construction activities are progressing in full swing for the 4000 mw Sasan ultra mega power project (UMPP) in Madhya Pradesh and significant progress has also been made on coal mine development, it said.

Project development activities have been put on the fast track for the 4000 MW Chitrangi power project in Madhya Pradesh and significant progress has been achieved with regard to obtaining land, water and environmental clearances for the project.

International Competitive Bidding (ICB) for engineering, procurement and construction of 8,000 mw of gas power projects are also on, said the release.