RIL to pump Rs90,000 crore into power sector foray: report

Mukesh Ambani-led Reliance Industries Ltd (RIL) may invest anywhere between $15 and 20 billion (Rs70,000-Rs90,000 crore) over the next 10 years towards its intended foray into the power sector, which, besides power generation, would also include transmission projects.

The funding for RIL's power business will be through a mix of debt and equity and a new company may be floated in the next two years to undertake execution of power projects, according to a Hindustan Times report citing a source close to RIL.

At the company's 36th annual general meeting on Friday, Ambani had outlined RIL's entry into power and broadband, where opportunities have opened with the scrapping of a non-compete pact with brother Anil's ADA Group.

He also projected a high-potential future for RIL's retail business, with a 10-fold growth from Rs4,500 crore to Rs 45,000 crore in five years.

Hindustan Times' sources also said since construction of a new power project takes up to five years, RIL, besides bidding for ultra mega power projects (UMPPs), may preferably look at inorganic growth (by acquisition of power plants) to establish its presence in the sector.

''RIL may look at acquiring some hydroelectric and thermal power projects besides bidding for coal based UMPPs of 4,000 mw capacity each,'' said the source.

UMPPs at Chhattisgarh, Orissa and Tamil Nadu - each of which would cost Rs 16,000 crore - are already on the investment radar of RIL.

RIL will also bid for transmission projects as the space has been offered for participation by the private sector, the report said.

An RIL spokesperson refused any official comments.