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Tuesday, September 04, 2012

 Anil Ambani seeks higher power tariff to ensure industry's health
MUMBAI: Power tariffs in India will have to go up to reflect the cost it takes to produce electricity and the health of producing companies, Reliance Power chairman Anil Ambani said Tuesday.
"Generating tariffs in India will have to go up, respecting the reality of the prices of coal and gas," Ambani told a shareholders' meeting here, referring to the crucial power situation in the country.
He further announced Reliance Power's strategic partnerships this year with global leaders like Germany's RWE and China Datang for developing coal mines and power, and with Shell for a floating an LNG terminal at Kakinada in Andhra Pradesh.
The markets, like in the case of the scrips of other group companies that had held their annual general meetings Tuesday, reacted positively. The shares of Reliance Power jumped 1.49 per cent, or Rs.1.15, to quote at Rs.78.45 on the Bombay Stock Exchange (BSE).
Ambani said Reliance Power has started coal production at its Sasan mine in Madhya Pradesh, six months ahead of schedule.
"Our coal mines at Sasan, the largest coal mines in India, have started production in a record time. This has been the fastest allocation-to-production for any greenfield coal mine in India," he said.
The coal from the mines will be used to generate power at the company's Sasan Ultra Mega Power Plant (UMPP), which is the largest domestic coal-based power project. The total production capacity of the plant will be 3,960 MW.

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