Reliance Energy to raise funds

Anil Ambani controlled Reliance Energy (REL) is planning to raise money from the markets. The board of directors of the company will meet on December 2 to consider a proposal for raising long-term resources by way of preferential allotment of equity, or equity-related securities or long-term debt or other financial instruments to augment funds for its various investments and infrastructure development projects.

Meanwhile, Reliance Power on Friday received the contract for setting up the 4,000 mw Krishnapatnam ultra mega power project (UMPP), which its chairman Anil Ambani says would make the Group by far the largest private power producer.

With a bid of Rs 2.33 per unit, Reliance beat Larsen and Toubro and Sterlite Industries for the project. Coastal Andhra Power (CAPL), the special purpose vehicle formed by Power Finance Corp, awarded the letter of intent to Reliance Power. “We will import 14-17 million tonnes of coal a year for the project depending upon the quality available,” Reliance Energy director (business development) J P Chalasani said.