Reliance Power Limited - Financial andStrategic Analysis ReviewSummaryRel iance Power L im i ted (Re l iance Power ) i s engaged in deve lop ing , cons t ruc t ing and operating power plants in domestic and international markets. The company is developing 13 power plants in India with a total installed capacity of 28,200 MW. The company is a part of Reliance Anil Dhirubhai Ambani Group, a leading Indian industrial house. Reliance Power opera tes th rough i t s subs id ia r ies and i t s power p lan t por t fo l io cons is ts o f s i x coa l - f i red  projects, two gas-fired projects and four hydroelectric projects.G loba l Marke ts D i rec t , the lead ing bus iness in fo rmat ion p rov ider , p resen ts an in -dep th  business, strategic and financial analysis of Reliance Power Limited. The report provides acomprehens ive ins igh t in to the company , inc lud ing bus iness s t ruc tu re and opera t ions , executive biographies and key competitors. The hallmark of the report is the detailed strategicanalysis and Global Markets Direct’s views on the company.Scope-The company’s strengths and weaknesses and areas of development or decline are analyzed.Financial, strategic and operational factors are considered.-The opportunities open to the company are considered and its growth potential assessed.Competitive or technological threats are highlighted.-The report contains critical company information – business structure and operations, thecompany history, major products and services, key competitors, key employees and executive biographies, different locations and important subsidiaries.-It provides detailed financial ratios for the past five years as well as interim ratios for the lastfour quarters.-Financial ratios include profitability, margins and returns, liquidity and leverage, financial position and efficiency ratios.Reasons to buy-A quick “one-stop-shop” to understand the company.-Enhance business/sales activities by understanding customers’ businesses better.-Get detailed information and financial & strategic analysis on companies operating in your  industry.-Identify prospective partners and suppliers – with key data on their businesses and locations.-Capitalize on competitors’ weaknesses and target the market opportunities available to them.-Compare your company’s financial trends with those of your peers / competitors.-Scout for potential acquisition targets, with detailed insight into the companies’ strategic,financial and operational performance.

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CORPORATE RESPONSIBILITY

Corporate Social ResponsibilityReliance power believes in integrating with the local community and promotes inclusive growth.

Reliance Power in its continuous efforts to positively impact the society, especially the areas around its sites and offices, has formulated policies for social development that are based on the following guiding principles:

Adopt an approach that aims at achieving a greater balance between social development and economic development.

Adopt new measures to accelerate and ensure the basic needs of all people.

Work towards elimination of all barriers for the social inclusion of disadvantaged groups- such as the poor and the disabled

Give unfailing attention to children for in their hands lies the country's future. It is for their sake that health, education and environment get topmost priority in our programmes and investments.

 

 

In areas around its power plant sites in Sasan,Rosa,Krishnapatnam,Butibori,Chitrangi and others,Reliance Power has been actively involved in various social and environmental organizations to address the issue of sustainable development and social uplift. The Company in discharge of its responsibility as a corporate citizen actively contributes to community welfare measures and takes up several social initiatives every year.

Reliance Power Ltd. has been closely working with institutions and social organizations and supporting their programmes for social development, adult literacy, adoption of village, tree plantation schemes etc. 

 

Health

Health and safety are of universal concern across the spectrum of communities. As a company, we are not only committed to compliance with legal norms but its is our endeavour to voluntarily go beyond that and provide quality healthcare facilities in the regions around our site. We are committed to providing all possible support to create awareness on various health related issues impacting the local people.We believe in a multidimensional approach that considers the needs of the area leading to an effective plan to address all issues in consultation with the local administration, community workers and NGOs working in the area.

At its various project sites,Reliance Power sites runs medical facility center, physiotherapy center, and mobile medical vans that dispenses free medicines and provide free health check-ups. Also periodically we come up with health camps like general health check up camps, gynaecology camps, eye check up camps and corrective surgery camps for disabled children.

Patients queing up at an eye camp Children being treated at corrective surgery camp

Lady availing medical help at the medical centre

Education

Education is a basic tool to bring development to an area and its people. We aim to create an awareness pool of human resource both within and across our area of operations. We are committed to bridging the digital divide between the ‘haves’ and ‘have nots’ in educational infrastructure and facilities. Exposure to technology along with a sustainable education model could be strengthened through partnership with government and quasi-government agencies.

Reliance Power is involved in a surfeit of activities that have changed the lives of the people residing at the sites or the PAFs (Project Affected Families).Education is the main thrust of these activities.Major contributions made in the area include building of a DAV school at the site for the children of the PAFs and the children of the villages around the sites, free school bus facility for the students, stipend to every child who attends school (a boy child gets Rs. 250 per month while a girl child gets a stipend of Rs. 300 per month), free uniforms, study tours for children, teaching aids to the teachers, training of teachers,as well as night schools for uneducated adults etc.

Inauguration of the school at one of our sites

Children attending training at the computer centre

Children at our DAV school

Employment

Community is an integral part of the business environment and the basic commitment lies towards augmenting the overall economic and social development of local communities by discharging our social responsibilities in a sustainable manner. Reliance Power invests significantly in skill upgradtion of people around the sites.

The trained manpower available for construction will ensure quality and accident free working. CIDC, a Government of India initiative has been engaged and has trained about 300 project affected youths as electricians, welders,

carpenters and masons and bar benders in batches of 40 each. To further encourage them we paid them, a monthly stipend of Rs.1000 per month. In addition efforts are on to enroll the oustees in short term courses at the ITI operating in the region. Apart from these, training is also provided are:

Computer coaching centre

English speaking classes

Personality development classes

Physiotherapy training center

Training by NAC (National Academy of Construction)and use them for future requirement of the construction.For the women folk of the villages, in an effort to empower them the company trains them in soft skills like tailoring and poultry farming etc. Reliance Power provides assistance to women keen on starting their own businesses.

Youths getting trained in engineering skills At our computer centre

Training youths in construction skills

 

The Human Touch beyond policy imperatives.

Although the main thrust of Reliance Power’s CSR lies in providing quality education, health care and livelihood, we don’t restrict ourselves to it. In order to better lives around our areas of interest and business, we strive to provide basic amenities like electrification in the villages, augmentation and development of roads connecting the village to the main roads, old age support for senior citizens of the project affect families, development of the grazing lands for the cattle of the villagers, afforestation and veterinary camps for domestic cattle. Moral and financial support is extended during social occasions like marriages, community prayers, funerals and other such occasions.

Monetary help being provided to the flood affected

Villagers being employed in fly-ash brick making units

Drinking water facility being provided to villages

COMPANY PROFILE

Company ProfileReliance Power is presently developing a power generating portfolio of over 35,000 MW.

Reliance Power Limited is a part of the Reliance Group, one of India’s largest business houses. The group operates across multiple sectors,including telecommunications, financial services, media and entertainment, infrastructure and energy. The energy sector companies include Reliance Infrastructure  and Reliance Power .

Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a portfolio of over 35,000 MW of power generation capacity, both in operation as well as capacity under development.

The power projects are going to be diverse in terms of  geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load centre. The company has 1,540 MW of operational power generation assets. The projects under development include seven coal-fired projects to be fueled by reserves from captive mines and supplies from India and elsewhere; two gas-fired projects; and twelve hydroelectric projects, six of them in Arunachal Pradesh, five in Himachal Pradesh and one in Uttarakhand.

Reliance Power has won three of the four Ultra Mega Power Projects(UMPPs) awarded by the Indian Government so far. These include UMPPs in Sasan( Madhya Pradesh),Krishnapatnam( Andhra Pradesh) & Tilaiya(Jharkhand).UMPPs are a significant part of the Indian government's initiative to collaborate with power generation companies to set up 4,000 MW projects to ease the country’s power deficit situation.

Besides these, Reliance Power is also developing coal bed methane (CBM) blocks to fuel gas based power generation. The company is registering projects with the Clean Development Mechanism executive board for issuance of Certified Emission Reduction (CER) certificates to augment its revenues.

Future outlook

Future OutlookFuture holds greater role of private sector in power generation and increase in FDIs.

Proposed Capacity Additions during 11th Plan (2007-12):The 11th Plan recommends generation planning based on an estimated 9.5% growth in required energy each year. As a result, a capacity addition of 78,577 MW is recommended in the 11th Plan as given below:

Sector Hydro Thermal Nuclear Total (%)

Central 9,685 26,800 2,658 39,865 (50.7%)

State 3,605 24,347 - 27,952 (35.6%)

Private 3,263 7,497 - 10,760(13.7%)

All India 16,553 58,644 3,380 78,577 (100%)

Source: Working Group on Power-11th Plan (2007-12)

Required capacity additions foreseen by the 12th Plan:

The requirement of installed capacity and capacity addition to meet the generation requirement during the 12th Plan period is given in table below:

Capacity addition required during 12th plan (2012-17):

GDP Growth GDP / Electricity Elasticity

Electricity Generation Required (BU)

Peak Demand (MW)

Installed Capacity (MW)

Capacity Addition Required During 12th Plan (MW)

8% 0.80.9

1,4151,470

215,700224,600

280,300291,700

70,80082,200

9% 0.80.9

1,4701,532

224,600233,300

291,700303,800

82,20094,300

10% 0.80.9

1,5251,597

232,300244,000

302,300317,000

92,800107,500

Source: Working Group on Power-11th Plan (2007-12)

Under various growth scenarios, the capacity addition required during 12th plan would be in the range of 70,800 - 107,500 MW, based on normative parameters. The 11th Plan Working Group recommends a capacity addition of 82,200 MW for the 12th Plan based on the scenario of 9% GDP growth rate and an elasticity of 0.8%.

 

Long term demand of power

The Ministry of Power has set a goal - Mission 2012: Power for All. Based on the 17th EPS, the total energy requirement in India will increase to 968,659 GWh by fiscal year 2012, 1,392,066 GWh by fiscal year 2017 and to 1,914,508 GWh by fiscal year 2022. This would lead to an annual electric peak load of 152,746 MW in fiscal year 2012, 218,209 MW in fiscal year 2017 and 298,253 MW in fiscal year 2022. The northern region is expected to contribute 30.1% and the western region contributes 28.4% of the overall annual electric peak load in fiscal year 2022. The Government has estimated the total investment potential of the sector at Rs. 9,000 billion for a specified period up to fiscal year 2011. This represents a significant opportunity for capacity expansion and growth opportunity for power generation companies, both in the public and the private sector

 

Current outlook of generation capacity addition

In line with the aggressive targets set by the government, a comprehensive Blueprint for Power Sector development has been prepared encompassing an integrated strategy with following objectives

Sufficient power to achieve GDP growth rate of 8%;

Reliability of power

Improved quality of power

Optimum power cost to ensure availability at affordable prices; and Commercial viability of power industry to make it attractive for private sector participation.The Government, through the Ministry of Power, has laid out the following broad strategies to achieve the objectives:

Power Generation Strategy: focusing on low cost generation, optimization of capacity utilization, controlling input costs, optimisation of fuel mix, technology upgrades and utilization of non conventional energy sources;

Transmission Strategy: focusing on developing the National Grid, including interstate connections, Technology upgrades and optimization of transmission cost;

Distribution Strategy: achieving distribution reforms by focusing on system upgrades, loss reduction, theft control, consumer service orientation, quality power supply commercialization, decentralized distributed and supply for rural areas

Regulation Strategy: protecting consumer interests and making the sector commercially viable;

Financing Strategy: to generate resources for required growth of the power sector;

Conservation Strategy: to optimise the utilization of electricity with a focus on demand side management, load management and technology upgrades to provide energy efficient equipment; and Communication Strategy: forming political consensus with the media support to enhance public awareness.

 

 

Key risks in the sector

Power sector is a highly capital intensive business with long gestation periods before commencement of revenue streams (construction periods of 4-5 years) and an even longer operating period (over 25 years). Since most of the projects have such a long time frame, there are some inherent risks in both the internal and external environment. We monitor the external environment and manage our internal environment to mitigate the concerns on a continuous basis. Some of the key concerns being faced by the sector currently are.

Coal supply position

More than 50 percent of India’s generation capacity is coal based. According to the Integrated Energy Policy, by FY31-32, India requires 2,040 million tonnes of coal for power generation, more than 5 times its current consumption levels. The shortage of coal is so acute that most of the power generation companies are looking at imported coal as a viable alternative to domestic coal.

Coal requirement of power sector (in million tonnes per annum)

Target CAGR 8%

Target CAGR 8%

 

Increasing importance of the private sector

India has emerged as one of the fastest growing economies in the world. Its current economic performance reflects a healthy trend based on increased consumption, investment and exports. Over the next five years, this growth is expected to continue. A key risk to the continued growth of the Indian economy is inadequate infrastructure. Infrastructure investment in India is on the rise, but growth may be constrained without further improvements. The Government of India has identified the power sector as a key sector of focus to promote sustained industrial growth. It has embarked on an aggressive mission –“Power for All by 2012”– and has undertaken multiple reforms to make the power sector more attractive to private sector investment.

Management discussion and problem

Management DiscussionsStatements in this Management Discussion and Analysis of Financial Condition andResults of

Operations of the Company describing the Company’s objectives,expectations or predictions

may be forward looking within the meaning of applicablesecurities laws and regulations.

Forward looking statements are based on certainassumptions and expectations of future

events.

The Company cannot guarantee that these assumptions and expectations are accurate orwill

be realized. The Company assumes no responsibility to publicly amend, modify orrevise

forward-looking statements, on the basis of any subsequent developments,information or

events. Actual results may differ materially from those expressed in thestatement. Important

factors that could influence the Company’s operations includecost of fuel, determination of

tariff and such other charges and levies by the regulatoryauthority, changes in government

regulations, tax laws, economic developments within thecountry and such other factors.

The financial statements are prepared under historical cost convention, on accrualbasis of

accounting, and in accordance with the provisions of the Companies Act, 1956 (theAct) and

comply with the accounting standards notified under Section 211 (3C) of the Actread with

Companies (Accounting Standards) Rules, 2006. The management of Reliance PowerLimited

(Reliance Power or the Company) has used estimates andjudgments relating to the financial

statements on a prudent and reasonable basis, in orderthat the financial statements reflect in a

true and fair manner, the state of affairs andprofit for the year.

The following discussions on our financial condition and result of operations should beread

together with our audited consolidated financial statements and the notes to thesestatements

included in the Annual Report.

Unless otherwise specified or the context otherwise requires, all references herein towe, us,

our, the Company,Reliance or Reliance Power are to Reliance Power Limited and/orits

subsidiary companies.

Economic outlook

The Indian economy has rapidly emerged from the slowdown caused by the global

financialcrisis of 2007-2009. The advance estimates for the year 2010-2011 indicate a growth

rateof 8.6 per cent against a growth rate of 8.0 per cent in the year 2009-2010.

Agriculturalgrowth was above trend, following a good monsoon. The index of industrial

production(IIP), which grew by 10.4 per cent during the first half of 2010-11,

moderatedsubsequently. However, other indicators, such as the manufacturing PMI, tax

collections,corporate sales and earnings growth, credit off-take by industry and export

performance,indicated strong economic activity. Leading indicators of services sector also

indicatedcontinuing growth momentum. However, inflation was the primary macroeconomic

concernthroughout the year 2010-11 and the Government and the central bank of the

countrycalibrated policies to contain inflation while at the same time trying to balance

growthrequirements. The outlook for global economy suggests that global recovery is

expected tosustain, although growth will slow down marginally and as far as Indian economy

isconcerned, it is expected that high commodity prices coupled with anti-inflationary

policystance would moderate growth for the coming year.

India Power Sector

It is a widely acknowledged fact that one of the major requirements for sustainable

andinclusive economic growth is availability of an extensive and efficient infrastructure. Itis

critical for the effective functioning of the economy and industry. The key to

globalcompetitiveness of the Indian economy lies in building a high class infrastructure.

Toaccelerate the pace of infrastructure development the Government has initiated a host

ofprojects and policies in all crucial sectors. Despite several challenges, the positiveresults of

the Government’s initiatives have started showing up in various sectors ingeneral and power

sector in particular.

The Electricity Reforms which started in the 1990s and took greater shape with theElectricity

Act 2003 have been able to attract private independent power producers and hasaccelerated

the capacity addition program. Nevertheless, reforms have remained incompleteparticularly in

the distribution sector and the future of the Power sector hinges uponurgent improvement of

distribution sector including steps such as revision of tariffs tomore economic levels. Also,

further growth of the power sector is critically dependent onavailability of fuel and this requires

immediate and focused attention of the governmentto put in place a policy framework which

can enable accelerated pace of development offuel sources.

Installed generation capacity

The total installed power generation capacity of India as on March 31, 2011 is 173,626MW out

of which over 18 per cent is contributed by the private sector.

Sector wise generation capacity (in MW) as on March 31, 2011

* Excluding captive generation capacity connected to grid: 19509.49 MW

Source: CEA

India has added generation capacity of 14,228 MW in FY10-11, a 48% per cent

increasecompared to capacity addition of 9,585 MW in FY09-10. Private sector was the

biggestcontributor with almost 55 per cent of the total capacity added in FY10-11.

Sector wise generation capacity added (in MW) in FY 10-11

* Excluding renewable energy and captive generation capacity

Source: CEA

India has been traditionally dependent on thermal power as a source of powergeneration,

which constitutes about 65 per cent of current capacity. The balance iscontributed by

hydroelectric power (22 per cent), nuclear (3 per cent), and renewableenergy (10 per cent).

Fuel wise generation capacity (in MW) as on 31st March 2011

Fuel Installed Capacity (MW) Share of installed capacity as %

Thermal 112,824 65.0

Coal 93,918 54.1

Gas 17,706 10.2

Diesel 1,200 0.7

Hydroelectric 37,567 21.6

Nuclear 4,780 2.8

Renewable energy 18,455 10.6

Total 173,626 100.0

* Excluding captive generation capacity connected to grid: 19,509.49MW

Source: CEA

With over half of the capacity added last year coming from coal based projects andcapacity

under construction biased towards coal based projects, India is increasinglyexpected to be

reliant on coal for achieving its target capacity addition plans. As aresult, shortage of coal

remains one of the most critical risks for power generation inIndia.

Generation capacity addition plans

The Government of India had set an ambitious target of adding 78,700 MW in the Eleventh5

Year Plan period (FY07-12). A total of 41,297 MW (53 per cent of target) has been addedin the

first 4 out of 5 years. It is pertinent to note that the capacity addition in theTenth 5 Year Plan

period (FY02-07) was 21.1 GW against a target of 41.1 GW (50 per centachievement).

Although it is highly likely that India will miss the target capacityaddition in the current 5 Year

Plan (FY07-12), the expected capacity addition is asignificant improvement from that of the

last Plan period of FY02-07.

The private sector has played a significant role in the augmentation of generationcapacity in

India in the last 3 years. Private sector’s share of operational capacityhas increased from 12.9

per cent in March 2007 to 21.2 per cent in March 2011.

Power generation

The total power generation in India during FY10-11 was 811.1 billion units (5.2 percent higher

than FY09-10) and was 2.4 per cent lower than the target estimates set forFY10-11.

Sector wise power generation performance in FY2010-11

SectorPower generation

(billion units)

Percentage

share

Percentage of

installed capacity

Average PLF

(thermal)

as % as %

State

sector343.3 42.3 47.5 66.70

Central

sector346.0 42.7 31.3 85.11

Private

sector116.2 14.3 21.2 76.70

Imported 5.6 0.7 - -

Total 811.1 100.0 100.0 75.07

Source: CEA

The private sector accounted for only 14 per cent of the total power generated, but itsshare in

the total pie is expected to increase significantly, since more than half ofcapacity addition in

XIth Plan is expected to be contributed by the private sector. Coalbased capacity contributed

66 per cent of the total power generated although itconstituted only 54 per cent of the

generation capacity. This also highlights theimportance of coal based projects for meeting the

base load capacity requirements

Fuel wise power generation performance in FY2010-11

FuelPower generated

(MU)

Share in generation

as %

Share in generation

capacity as %

Thermal 664.9 82.0 65.0

Hydroelectric 114.3 14.1 21.6

Nuclear 26.3 3.2 2.8

Imported 5.6 0.7 10.6

Total 811.1 100 100.0

Outlook of power generation sector l Demand and supply outlook

In order to sustain a GDP growth rate of over 8 per cent, it is essential that thepower sector

also grows at a similar rate. The power sector has witnessed acute shortageof electricity over

the last few years. The energy deficit in FY10-11 was 7.5 per cent andthe peak power deficit

was 10.3 per cent indicating a huge gap between demand and supplyof electricity. The gap

between demand and supply has not decreased in the last few years,leading to persistent

power shortages. The following table highlights the deficitsituation in the last few years

Power deficit scenario - all India in the period FY05-11 (in %)

Source: CEA

In recent years, India’s energy demand has been increasing very fast due to thepopulation

growth and economic development. The increase in installed power generationcapacity has

however not kept pace with the increase in demand for power thus leading topower shortages.

Despite the overall increase in energy demand, per capita energyconsumption in India, at 704

kwh, is still very low compared to other developingcountries.

Source: Think BRIC-Comparative study of power sector by KPMG (Jan 2010)

According to the 17th Electric Power Survey, India requires 968.7 billion units ofelectricity in

FY11-12 while the current generation in FY10-11 is 811.1 billion units.This implies that power

generation has to increase by 19.4 per cent in FY 2011-12 just tomeet the demand, almost

double the growth rate of 5.5 per cent witnessed in FY10-11.

• Long term demand and supply outlook

As per the Ministry of Power, to deliver a sustained GDP growth of 8 per cent tillFY31-32,

India’s generation capacity has to grow to 962,210 MW, more than 6 times thecurrent

generation capacity. This implies a CAGR of 8.6 per cent over 22 years and anaverage

capacity addition of over 36,000 MW every year, almost 4 times the capacityaddition rate in

the current 5 Year Plan till date (41,297 MW added in 4 years).

The GDP growth of India in the last few years has been significantly higher than thepower

sector growth thus putting more pressure on the sector. In the period FY02-11,while the GDP

has been growing at an average of over 8 per cent, the power generationcapacity has been

growing at a CAGR of 7.0 per cent (from 132,329 MW in FY07 to 173,626 MWin FY11).

Opportunities and threats

In the last decade, the government has taken various initiatives to increase public aswell as

private investments in the sector to enhance generation capacity and eliminatepower deficit.

The Parliament enacted the Electricity Act, 2003 and the Government hasfollowed up on the

reform agenda with various other policy measures to make the powergeneration sector

attractive for investors. The Electricity Act, 2003, requires theCentral Electricity Authority

(CEA) to lay out the National Electricity Plan once in everyfive years and revise the same from

time to time in accordance with the NationalElectricity Policy. This Plan serves as a roadmap

for accelerated growth of the powersector. Now 100 per cent Foreign Direct Investment (FDI)

is allowed in generation,transmission and distribution segments. Incentives are given to the

sector through waiverof duties on capital equipments under the Mega Power Policy. These

policy initiatives haveresulted in building up investor confidence in the power sector and have

created an idealenvironment for increased participation by the private sector.

In order to attract further private participation in the power sector, the Governmentof India had

announced the Ultra Mega Power Projects (UMPP) scheme under which thegovernment would

partner with the private sector for developing large power projects.

The policy framework for the power sector encourages developers to put power projectsfrom

which they can sell power through long term Power Purchase Agreements (PPA) atattractive

and sustainable returns and also , to sell power through short term contracts(bilateral

contracts) or spot markets (unscheduled interchange, power exchanges) atsignificantly high

premium to the long term tariffs till there is a critical power deficitin India.

Gas based projects account for around 10 per cent of the total generation capacity ofIndia,

which is much lower than the world average. The current gas production in India is165

mmscmd out of which 68 mmscmd is utilized by the power generation sector. The bulk ofthe

additional production has to be absorbed by the fertilizer and power generationsector, the two

biggest consumers of natural gas. This will lead to increased availabilityof gas for power

generation and at reasonable prices. Due to an expected jump in thequantum of supply, gas is

expected to increase its share of the total power generation pieby the next few years.

Considering the ever increasing electricity demand and inadequate availability of fuelthere is a

dire need to tap various new sources of energy including renewable energy.Further, growing

awareness with regard to benefits of clean energy have also promptedrenewed focus on

renewable energy by all the stakeholders in the energy ecosystem.

India has one of the highest potentials for the effective use of renewable energy.India has a

potential of 48,500 MW in wind energy and 25,000 MW in solar energy. Besidesthis, there is

an additional potential of 148,700 MW of hydroelectric capacity, out ofwhich only 25 per cent

has become operational till now. The renewable energy capacity hasgone up from 7,761 MW

in March 31, 2007 to 18,455 MW in March 31, 2011 (growth of over 135per cent in 4 years).

With coal shortage becoming a reality in the last couple of years,it is imperative for India to

have a focused strategy for renewable energy. The Governmenthas already started acting on

this agenda. Some of the significant steps taken recentlyare

• Policy envisaging that all states should mandatorily meet Renewable PurchaseObligations

(RPO) of 5 per cent of total generation which goes up by 1 per cent with everypassing year till

FY2020 to reach a level of 15 per cent.

• Launch of Jawaharlal Nehru National Solar Mission (JNNSM), which aims to ensurethat solar

energy technologies in the country achieve grid parity by 2022. It has plansfor deployment of

20 GW of solar power by 2022.

• Imposition of Carbon cess of Rs. 50 per tonne for all domestic and imported coalbased

projects. The funds raised will be utilized to drive development in the renewableenergy sector.

With increasing focus on environment related issues, power projects, employing cleanand

environment-friendly technology (hydroelectric and other renewable energy sources) canalso

earn carbon credits, which are traded extensively in the international market; thusproviding an

additional source of revenue.

Key risks and concerns

Power sector is a highly capital intensive business with long gestation periods

beforecommencement of revenue streams (construction periods of 4-5 years) and an even

longeroperating period (over 25 years). Since most of the projects have such a long time

frame,there are some inherent risks in both the internal and external environment. We

monitorthe external environment and manage our internal environment to mitigate the

concerns on acontinuous basis. Some of the key concerns being faced by the sector currently

are:

1. Coal supply position

More than 50 per cent of India’s generation capacity is coal based. According tothe Integrated

Energy Policy, by FY31-32, India requires 2,040 million tonnes of coal forpower generation,

more than 5 times its current consumption levels. The shortage of coalis so acute that most of

the power generation companies are looking at imported coal as aviable alternative to

domestic coal.

The total imported non cooking coal quantity has increased more than 3 times within thelast 5

years and is expected to go up at a much faster rate once most of the imported coalbased

projects including the two Ultra Mega Power Projects which are being commissioned inthe

Country. The increase in the prices of imported coal is a matter of serious concernand there is

an urgent need to undertake a review of the mechanism for passing on theincreasing coal

costs to end-consumers.

Realizing this, the Government has recently announced some policy changes andinitiatives in

coal mining. Currently coal blocks are awarded to private sector companiesthrough a

Screening Committee called the Standing Linkage Committee. The Government hasamended

the Mines and Minerals (Development and Regulation) Act, 1957 so that theallocation process

by the Screening Committee is replaced by a transparent auctionprocess. The Government

has also announced draft guidelines for bidding of coal miningblocks. The Government is also

in the process of announcing various policy initiativeswhich would encourage faster

development of coal mines and thus reduce the demand-supplymis-match for coal.

2. Weak financial condition of electricity distribution companies

The financial health of electricity distribution companies (DISCOMs), is fast emergingas an

area of major concern threatening the very viability of the power sector. Theirinability to

generate adequate resources is affecting their ability to make capitalinvestment, borrow funds

at competitive rates and make timely payments of otherstakeholders. Book losses of the

utilities are rising with increasing power purchase costswithout commensurate increase in

tariffs. Further, the Aggregate Technical and Commercial(AT&C) losses of the Utilities are still

at very high levels. The average of theAT&C losses reported by Indian distribution utilities is

almost 30 per cent. AT&Closses in Indian utilities vary from one state to another. The

cumulative losses incurredby the distribution companies is projected to rise to Rs. 116,089

crore by FY 2014-15assuming 2008 tariff level with no increases, according to a Mercados

study for the 13thFinance Commission. Power Finance Corporation has also brought out a

report on thefinancial condition of the various distribution companies. The study shows that 35

out ofthe 39 utilities studied were incurring losses, and net worth of 22 utilities were foundto be

negative.

3. Execution risk

Power projects are highly capital intensive and have a long development andconstruction

phase thus exposing them to various macroeconomic as well as project specificrisks. During

the development phase, a project faces the following key risks:

• Delays in statutory approvals and clearances from the authorities

• Delays in Land acquisition

• Non-availability / delays in obtaining Fuel, water & transmission linkages

• Availability and cost of capital - both equity and debt funding

During the construction stage which covers the period from the commencement ofconstruction

till the commissioning of projects, the key risks that need to be monitoredare:

• Delays leading to time over-runs

• Increase in project costs leading to cost over-runs

• Challenges in transportation/logistics of equipments

• Hydrological & geological risks in case of hydroelectric projects

During the construction phase, ensuring that all the supply and erection contracts areplaced on

time and within the cost estimates is a critical challenge and thereafterensuring that all the

vendors and contractors perform their responsibilities as envisagedis a key risk.

Internal control systems and their adequacy

The Company has put in place internal control systems and processes commensurate withits

size and scale of operations. An Enterprise Resource Planning System developed by SAPhas

been implemented in the Company. The system has control processes designed to takecare of

various control and audit requirements. In addition, the Company has an InternalAudit function,

which oversees the implementation and adherence to various systems andprocesses and

preparation of Financial Statements as per Generally Accepted Principles andPractices.

Further, the internal audit group also appoints reputed audit firms toundertake the exercise of

conduct of Internal Audit at various locations. The report ofthe Internal Auditors is placed at the

Audit Committee Meetings.

Reliance Power has put in place a Risk Management Framework, both at the corporate aswell

as the project level, which provides a process of identifying, assessing, monitoring,reporting

and mitigating various risks at all levels at periodic intervals. Under theframework the

Company has constituted a Risk Management Committee at both the CorporateLevel as well

as Project Level to continuously monitor report and mitigate various risksfaced. The outcome

of this monitoring is reported to the Audit Committee of the Board ofDirectors on a quarterly

basis.

Discussion on Operations of the company

The Company is in the business of setting up and operating power projects and in

thedevelopment of coal mines associated with such projects. The Company has identified

alarge portfolio of power projects of over 35,000 MW and is also developing coal mines witha

potential to develop almost 95 million tonnes of coal per annum (MTPA). Of the powerprojects

which the company is developing 600 MW are already operational while the balancecapacities

are under various stages of development.

Operational projects

1. Rosa Phase 1, a 600 MW coal-based power project in Uttar Pradesh

The successful commissioning of the second 300 MW unit of Rosa Phase 1 in June

2010marked the commencement of operations of the entire 600 MW of the project. This is

thefirst operational project of the company. However, fuel supply and evacuation

constraintsresulted in a lower Plant Load Factor (PLF) during the first nine months of the

financialyear 2010-11. However, with the resolution of the fuel supply and evacuation

problems theplant has been operating very efficiently and has been consistently operating at

over 100per cent PLF. During the last quarter of the financial year the plant achieved a PLF

ofover 87 per cent.

To ensure continued efficient operations at the plant, the Company has installed worldclass

Operations and Maintenance (O&M) systems. There is a strong O&M team at thesite

supported by an experienced O&M team at the corporate office. A trainingsimulator which is a

replica of unit distributed control system has been set up at Rosafor training operation staff at

regular frequency. Employees are provided in housetraining as well as specialized training by

equipment manufacturer.

The Company has installed a centralized fleet wide optimization and performancemanagement

center for monitoring, optimizing and condition monitoring of assets across thepower stations.

Latest reliability centered maintenance techniques have been employed inRosa which gives

the project significant benefits in terms of diagnostics and preventivemaintenance and

reduction of outages.

2. Projects under development and execution

Reliance Power is developing a number of large and medium sized power projects with

acombined planned installed capacity of over 35,000 MW, one of the largest portfolios ofpower

generation assets under development in India.

These power projects are planned to be diverse in geographic location, fuel type, fuelsource

and off-take, and each project is planned to be strategically located near anavailable fuel

supply or load center. Reliance Power has been successful in bagging threeUltra Mega Power

Projects (3,960 MW each at Sasan in Madhya Pradesh, Tilaiya in Jharkhandand

Krishnapatnam in Andhra Pradesh). The Company intends to sell the power generated

fromother projects under a combination of long-term and short-term PPAs to state-owned

andprivate distribution companies and industrial consumers.

All the projects are in various stages of operation, construction and development. Abrief on the

developments on these projects is provided.

Coal Based Power Projects

1. Rosa Phase 2, a 600 MW coal-based power project in Uttar Pradesh

Rosa Phase 2 is being implemented by Rosa Power Supply Company Limited (RPSCL) a

whollyowned subsidiary of Reliance Power. Like Rosa Phase 1, this is also a coal based

projectwith two subcritical technology based units of 300 MW each. The project is scheduled

tocommence power generation within the 11th plan (i.e. by March 2012). This is a

brownfieldexpansion and hence is utilizing the additional land acquired and water allocated for

RosaPhase 1. The project has obtained all major approvals from the Government of

UttarPradesh and construction activities are in full swing at the site. The power generatedfrom

the plant will be sold to Uttar Pradesh Power Company Limited. Fuel supply has beensecured

for the project with Government of India awarding long-term coal linkage for thecapacity

expansion. The project has achieved financial closure with a consortium of banksled by IDBI

Bank.

2. Butibori, a 600 MW coal-based power project in Maharashtra

Vidarbha Industries Power Limited (VIPL) is currently developing a 600 MW coal-basedpower

project (2 units of 300 MW each) with subcritical technology located at Butibori,Maharashtra

Industrial Development Corporation (MIDC) in Nagpur, Maharashtra. Theconstruction of the

Project is expected to be completed in the 11th Plan. The project iscurrently in the construction

phase and is expected to begin commissioning by March 2012.The power generated from the

project would be sold to industrial consumers and the balanceto other off-takers through long-

term and medium-term contracts.

3. Sasan Ultra Mega Power Project, a 3,960 MW pithead coal-based Project inMadhya

Pradesh

The project is being developed by Sasan Power Limited (SPL), a wholly owned subsidiaryof

Reliance Power. Reliance Power was awarded the Sasan project following an

internationalcompetitive bidding process and the project will be selling power to 14

Procurerscomprising 7 States. The project will use coal from the captive coal blocks allocated

forthe project. The first unit of the project is expected to be commissioned towards the endof

the calendar year 2012. The project has achieved financial closure. The constructionactivities

at the project are progressing as per plans. The Company has also madesignificant progress

in the development of coal mines allocated for the Sasan project.Coal production from the

mines is expected to commence before the commissioning of thefirst unit of Sasan UMPP.

4. Krishnapatnam Ultra Mega Power Project, a 3,960 MW imported coal-basedProject in

Andhra Pradesh

Coastal Andhra Power Limited (CAPL), a wholly owned subsidiary of the Company

isdeveloping the project. Reliance Power was awarded the Krishnapatnam project following

anInternational Competitive Bidding process and it will be selling power to 11

Procurerscomprising 4 States. The Krishnapatnam project is located approximately 3 km from

thenearest port where imported coal will be delivered to supply fuel for the project. Coalfor the

project is planned to be imported from Indonesia. The project has achievedfinancial closure

and is scheduled to be completed in the year 2015.

5. 3,960 MW coal-based power project in Madhya Pradesh

Chitrangi Power Private Limited (CPPL), a wholly owned subsidiary of Reliance Power

hasplans to develop a 3,960 MW coal-based power project at Madhya Pradesh in

differentphases. The coal required for the project is likely to be sourced from the captive

coalmines allocated to Reliance Power. The Company intends to sell the power through long

termcontracts.

6. Tilaiya Ultra Mega Power Project, a 3,960 MW pithead coal-based power projectin

Jharkhand

Jharkhand Integrated Power Limited (JIPL), a wholly owned subsidiary of Reliance Poweris

developing the Tilaiya Ultra Mega Power Project at Hazaribagh District in Jharkhand.The

project was awarded to Reliance Power under international competitive bidding processand

will be selling power to 18 Procurers comprising 10 states in Northern, Western andEastern

India. The project would be using coal from the captive coal mine blocks awardedalong with

the project. As per the PPA the first unit is scheduled to be commissioned inMay 2015 and the

entire project is scheduled to be commissioned by May 2017.

Gas Based Power Projects

The Company has identified and is developing various sites located in the states ofUttar

Pradesh, Andhra Pradesh, Maharashtra and Gujarat for setting up of gas based

powerprojects. Construction work has commenced at Samalkot located in Andhra Pradesh

forsetting up of a 2,400 MW gas power capacity. The construction activities at the site arein full

swing and the first unit of the plant is scheduled for commissioning in the year2011.

Hydroelectric Power Projects

The Company is developing various hydroelectric power projects located in

ArunachalPradesh, Himachal Pradesh and Uttarakhand. These projects are in different stages

ofdevelopment. Hydroelectric power projects by nature have long gestation periods andrequire

clearances from various authorities before commencement of constructionactivities. Some of

these projects have achieved various milestones and are likely to bedeveloped in the next few

years.

Renewable Power Projects

The Company has plans to have a portfolio of projects which are based on renewableenergy

such as Wind and Solar. Rajasthan Sun Technique Energy Private Limited (RSTEPL),

awholly-owned subsidiary, is developing a 100 MW concentrated solar power project

inJaisalmer, Rajasthan. Solar Power generated from this plant will be sold to NTPC

VidyutVyapar Nigam (NVVN). The project will be set up at Dhursar in the state of Rajasthan

andis scheduled for commissioning in 2013. The Company is also devoloping a 40 MW

solarphotovoltaic project at the same location which is scheduled for commissioning in 2012.

Coal Mines

The Company has been allocated coal mines in India along with the ultra mega powerproject.

The Company has prepared mine plans for taking out coal from these mines and themine

plans have been approved by the Ministry of Coal for producing up to 65 MTPA. TheCompany

has also acquired coal mine concessions in Indonesia for which the Company isfinalizing plans

to produce 25 MTPA. The development of the mines are in different stagesand are linked to

the schedule of the projects for which the coal would be used.

Coal Bed Methane (CBM) Blocks

The Company has stakes in Four Coal Bed Methane (CBM) blocks and one Oil and Gas

block.Drilling work has commenced in one of the CMB blcoks while exploratory work is in

progressin all the blocks.

Clean Development Mechanism (CDM)

Clean Development Mechanism (CDM) is one of the three market based mechanisms

agreedunder the Kyoto Protocol to reduce Greenhouse Gases (GHG). CDM encourages

projectdevelopers, in the developing countries, to adopt environmental friendly

technologiesand/or fuels so that the GHG emissions can be reduced. Such reduced GHG

emissions willenable the developers of those projects to generate Certified Emission

Reductions (CERs).Such a move allows developing countries to implement GHG emission

reduction projects in amanner that they assist developed countries to meet their GHG

limitation targets in acost-effective manner.

The Company had applied for the CDM registration of Sasan project in May 2010. InOctober

2010, Sasan project achieved the distinction of the world’s largest powergeneration plant ever

registered under CDM. It also established the unique recognition ofbeing the first Ultra Mega

Power Project (UMPP) from India to be registered with CDMExecutive Board. Sasan Project

will generate approximately 22.5 Million CERs during theinitial 10 years with a revenue

generation potential of Rs. 2,000 crore.

The Company has applied for the CDM registration for the Krishnapatnam and TilaiyaUMPPs.

Decision of the CDM Executive Board on both these UMPPs is expected in the currentfinancial

year.

The Company is also developing Samalkot project as a CDM project in three phases.

TheCompany is also implementing the 100 MW solar thermal project located in Rajasthan as

aCDM project.

Health, safety and environment

The Company attaches utmost importance to safety standards at all installations of

theCompany. Necessary steps are regularly undertaken to ensure the safety of employees

andequipment. Both external and internal safety audits are regularly conducted. Mock drillsare

conducted to gauge emergency and disaster management preparedness. The Board has

alsoconstituted a committee comprising of Independent Directors to have a oversight on

theseissues and to monitor and report to the Board actions being taken in this regard.

Human Resources

The Company has been building up its human resources for the implementation of itslarge

power capacity addition program. We are now a family of over 700 professionals.Teams have

been put in place both at the Corporate Office and in all the projectlocations. The Company

has adopted a strategy of putting senior and experienced (in thepower sector) professionals as

Project Leaders and Functional heads and teams are beingbuilt around them. Considering the

fact that many of the power projects are located inremote areas, suitable compensation

schemes as well as facilities for townships witheducation and medical facilities are being

planned. The Company also has a GraduateEngineer Trainee Program under which Graduate

Engineers are recruited and trained forworking in Power Plants. These Graduate Engineers

are recruited through a National Levelcompetition offering opportunities to all the meritorious

candidates across the country.The selection process involves online screening of the

candidates followed by GroupDiscussion and Personal Interviews. The Company is planning

to have simulators at variousproject locations where operational training services can be

provided.

Discussion on Financial Condition and Financial Performance Financial Condition

Reliance Power Limited is the holding Company with the following subsidiary companieswhich

are developing various power projects.

Company Project

Rosa Power Supply Company Limited Rosa Stage I and Stage II

Vidarbha Industries Power Limited Butibori GCPP

Sasan Power Limited Sasan UMPP

Coastal Andhra Power Limited Krishnapatnam UMPP

Chitrangi Power Private Limited Chitrangi

Maharashtra Energy Generation Limited Shahpur

Jharkhand Integrated Power Limited Tilaiya UMPP

Siyom Hydro Power Private Limited Siyom HEPP

Urthing Sobla Hydro Power Private Limited Urthing Sobla HEPP

Tato Hydro Power Private Limited Tato II HEPP

Kalai Power Private Limited Kalai II

Amulin Hydro Power Private Limited Amulin

Emini Hydro Power Private Limited Emini

Mihundon Hydro Power Private Limited Mihundon

Samalkot Power Limited Samalkot

Rajasthan Sun Technique Energy Private Limited Jaisalmer

Dahanu Solar Power Private Limited Dahanu

An extract of the Consolidated Balance Sheet is placed below:

Rs. in crore

As on March 31

2011 2010

Source of Funds

Net Worth 16,833.44 14,463.05

Loan Funds 7,334.83 2,240.61

Total 24,168.27 16,703.66

Application of Funds

Fixed Assets 16,259.53 9,143.63

Investments5,678.99 7,915.24

Net Current Assets 2,229.75 -355.21

Total 24,168.27 16,703.66

Loan Funds have increased to Rs. 7,334.83 crore from Rs. 2,240.61crore.

Fixed assets have increased to Rs. 16,259.53 crore from Rs. 9,143.63 crore.

Investments were at Rs. 5,678.99 in FY11 end as compared to Rs. 7,915.24 crore in FY10end.

Financial Performance

The first unit of Rosa Phase I, was declared commercially operational in March 2010 andthe

second unit become operational in June 2010. The remaining projects are presentlyunder

various stages of implementation. The Company made an Initial Public Offering (IPO)in

January 2008 through which it raised Rs. 11,563.20 crore to be used mainly for equityinfusion

into various projects. The un-utilized cash available from the IPO is invested invarious money-

market instruments and earn income. An extract of the Consolidated Profitand Loss Account

Statement is placed below:

Rs. in crore

ParticularsYear ended

31.03.2011

Year ended

31.03.2010

Income

Sale of Energy 1,023.68 20.72

Income from Other Operations 31.08 -

Dividend Income 190.94 224.80

Profit on redemption of MFs 531.49 572.89

Miscellaneous Income 140.84 24.97

Total 1,918.03 843.38

Expenditure

Cost of Fuel 559.64 22.10

Other Operating Expenditure 23.24 –

Employee Cost/Managerial

Remuneration76.90 43.32

General, Administration & 165.85 60.94

Other Expenses

Depreciation 100.88 5.71

Interest 219.52 8.71

Total 1,146.03 140.78

PBT 772.00 702.60

Taxes 11.56 18.71

PAT 760.44 683.89

EPS (Rs.) (basic and diluted) 2.94 2.85

COMPANY PROFILE

Company Profile

Reliance Power Ltd is part of the Reliance Anil Dhirubhai Ambani Group, one of India's largest business houses. The company is engaged in the development, construction and operation of power generation projects with a combined planned capacity of 35,000 megawatts. Their projects are diverse in geographic location, fuel source and offtake. Reliance Power Ltd was incorporated on January 17, 1995 as a private limited company with the name of Bawana Power Pvt Ltd. In February 1, 1995, the name of the company was changed from Bawana Power Pvt Ltd to Reliance Delhi Power Pvt Ltd. During the year 2003-04, the company started 3740 MW Natural Gas based Combined Cycle Power Plant at Dadri. In February 17, 2004, the name of the company was changed from Reliance Delhi Power Pvt Ltd to Reliance EGen Pvt Ltd and in March 10 2004, the name of the company was further changed to Reliance Energy Generation Pvt Ltd. In March 19, 2004, the company was converted into a public limited company and the name was changed to Reliance Energy Generation Ltd. During the year 2006-07, the company signed a joint communique with Govt of Orissa to set up a 12000 MW coal based pit head power project at Hirma in Dist Jharsuguda in Orissa. In November 2006, the company acquired 100% shareholding in Rosa Power Supply Company Ltd, which is implementing the 1,200 MW coal based power plant in Uttar Pradesh. Thus, Rosa Power Supply Company became a wholly owned subsidiary company. During the year 2007-08, Sasan Power Ltd, Maharashtra Energy Generation Ltd, Vidarbha Industries Power Ltd, Tato Hydro Power Private Ltd, Siyom Hydro Power Private Ltd, MP Power Generation Pvt Ltd, Urthing Sobla Hydro Power Pvt Ltd, Kalai Power Pvt Ltd, Coastal Andhra Power Ltd and Reliance Coal Resources Pvt Ltd became the subsidiaries of the company. During the year, as per the scheme of amalgamation, the assets and liabilities of the erstwhile Reliance Public Utility Private Limited (RPUPL), were transferred to and vested in the Company with effect from September 29, 2007. In July 2007, the name of the company was changed from Reliance Energy Generation Ltd to Reliance Power Ltd. During the year 2008-09, the company entered into an MoA with Government of Arunachal Pradesh for execution of four hydro power projects of 1,200 MW Kalai II on Lohit River Basin, 420 MW Amulin, 500 MW Emini and 400 MW Mithundon on river Dibang in the state of Arunachal Pradesh. During the year, Reliance Power International Sarl, a Perpetual, Limited Liability Company became a subsidiary company with effect from October 30, 2008. In March 2009, Sasan Power Infrastructure Ltd and Sasan Power Infraventures Pvt Ltd became the subsidiaries of the company. During the year 2009-10, the company incorporated Amulin Hydro Power Pvt Ltd, Emini Hydro Power Pvt Ltd and Mihundon Hydro Power Pvt Ltd as wholly owned subsidiaries of the company. In August 7, 2009, the entire investment of Power Finance Corporation Ltd in Jharkhand Integrated Power Ltd was transferred to the company for a consideration of Rs 6988 lakh. Thus Jharkhand Integrated Power Ltd became the wholly owned subsidiary of the company. Rosa Power Supply Company Ltd, a wholly owned subsidiary, commissioned their first unit of 300 MW with effect from March 12, 2010. In June 2010, Reliance Patalganga Power Ltd, Bharuch Power Ltd, Ballerina Advisory Services Pvt Ltd and Reliance Futura Ltd became wholly owned subsidiaries of the company. In addition, the company disposed of their majority shareholding in Sasan Power Infrastructure Ltd and Sasan Power Infraventures Pvt Ltd. In May 2010, the

company acquired three power plants with a total capacity of 433 megawatts from Reliance Infrastructure Ltd at a transfer value of Rs 10.95 billion. During the year 2010-11, Reliance CleanGen Ltd (formerly Reliance Patalganga Power Ltd), Bharuch Power Ltd, Rajasthan Sun Technique Energy Pvt Lied (formerly Ballerina Advisory Services Pvt Ltd), Atos Trading Pvt Ltd, Atos Mercantile Pvt Ltd, Reliance Prima Ltd, Reliance Futura Ltd (since merged) Reliance Power Netherlands BV, Samalkot Power Ltd, PT Heramba Coal Resources, Indonesia, PT Avaneesh Coal Resources, Indonesia, Solar Generation Company (Rajasthan) Pvt Ltd, Dahanu Solar Power Pvt Ltd, Sasan Power Infrastructure Ltd, Sasan Power Infraventures Pvt Ltd (since merged), Reliance Fuel Resources Ltd, Reliance Natural Resources (Singapore) Pte Ltd, Reliance Natural Resources Ltd, Reliance Renewable Power Pvt Ltd, Reliance Biomass Power Pvt Ltd, Reliance Solar Resources Power Pvt Ltd, Reliance Clean Power Pvt Ltd, Reliance Tidal Power Pvt Ltd, Reliance Geothermal Power Pvt Ltd, Reliance Wind Power Pvt Ltd, Reliance Green Power Pvt Ltd, PT Sumukha Coal Services, Indonesia, PT Brayan Bintang Tiga Energi, Indonesia, PT Sriwijaya Bintang Tiga Energi, Indonesia, became the subsidiaries of the company. As per the scheme of arrangement between Reliance Natural Resources Ltd (RNRL) and Reliance Power Ltd (RPower) and Atos Trading Pvt Ltd (ATPL) and Atos Mercantile Pvt Ltd (AMPL) and Coastal Andhra Power Infrastructure Ltd (CAPIL) and Reliance Prima Ltd (RPL) and Reliance Futura Ltd (RFL), the business undertakings of RNRL consisting of four Exploration Blocks situated at Barmer in Rajasthan, Kothagudem in Andhra Pradesh, Sohagpur in Madhya Pradesh and in Mizoram were demerged and vested into the company. The appointed date of the Scheme was October 15, 2010. Also, as per the Scheme, Reliance Futura Ltd was amalgamated into the company. Sasan Power Infraventures Pvt Ltd, a wholly owned subsidiary of the company was amalgamated into the company with effect from May 25, 2011, The appointed date was January 1, 2011.