REL to bid for UP power distribution

Even as the battle over the ‘ownership issues’ in Reliance Industries appears to be cooling down, the board of Reliance Energy has approved participation in the international competitive bidding for divestment of Uttar Pradesh government’s majority stake in five power distribution companies (Discoms).

The approval was given by the board of directors in a meeting held on Tuesday, the company said in a release. The board— led by its chairman and MD Anil Ambani — had also decided to consult its principal shareholders Reliance Industries on several matters concerning the future prospects of the company and related issues.” RIL has 50.15 per cent stake in Reliance Energy.

The UP government has already launched the divestment process and invited expressions of interest (EoI). The five discoms, which are responsible for distribution and supply of power across the UP, are headquartered in Meerut, Agra, Lucknow, Varanasi and Kanpur.

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The five discoms together cater to about 8.5 million consumers over 2,40,000 sq km with a peak demand of about 6,500 mw. The aggregate revenue of the discoms is about Rs 7,500 crore.

REL along with Tata Power, ntpc, Essar Power, CESC, Ahmedabad Electric Company and GVK Group have already purchased EoIs.