Anil Ambani, chairman of Reliance Infrastructure (RInfra) and Reliance Power (RPower), told shareholders at a virtual annual general meeting (AGM) on Tuesday that promoters will increase their stake in the firms.
Ambani also informed shareholders that RPower has refrained from taking a moratorium on its loans, calling the moratorium a “financial penalty”. The promoters plan to increase shareholding over time, in line with the applicable regulatory guidelines, RPower and RInfra said in separate statements. Apart from these two group companies, the AGM of Reliance Capital was also conducted digitally on Tuesday.
Promoters held 14.59 per cent stake in RInfra and 19.29 per cent in RPower as of March.
Other announcements made at the AGMs were plans to participate in the auctions for commercial coal mining and turning RInfra debt-free this financial year. Ambani had earlier announced plans to turn RInfra debt-free in 2018, after the sale of the firm’s Mumbai power distribution business to Adani Transmission.
Ambani said RPower would look at all “capital-light” opportunities, such as operations and maintenance services for power plants, and mine development services for coal mines.
Elaborating on the financial decisions taken due to Covid-19, the AGM statement added, “RPower has not availed of moratorium of debt in any of the special purpose vehicles, as the management considers availing of such moratorium to be a financial penalty.” On pay-cuts undertaken, both RInfra and RPower said company executives agreed to a 50 per cent reduction in compensation.
The statement said Ambani has voluntarily forgone commission and remuneration for the year, payable for the post he holds at both these firms. On planned capital expenditure, RPower plans to spend Rs 3,300 crore to install flue-gas desulphurization units at its coal-based plants. The statement added, development of Phase-1 (750 Mw) of gas-based power project in Bangladesh is on track and Samalkot Power signed an equipment supply contract in March to sell one module for development of the Phase-1 project in Bangladesh. “This will help Samalkot reduce outstanding debt by nearly Rs 1,600 crore,” RPower said.
Source: Business-Standard