Reliance ADAG

Reliance Power
Assessment of Business:
Strengths Large Projects: Reliance Power has bagged 3 out of 4 UMPPs (Ultra Mega Power Projects) awarded by the Government of India. Diversified Fuel Sources: Upon completion RPower's power projects will produce almost 20,000 MW of coal-fired capacity, 10,000 MW of gas-fired capacity and 5,292 MW of hydroelectric capacity. Entitlement to earn Carbon Credits: Most of the coal-fired power projects, will employ supercritical or ultra-supercritical technology, which will entitle the company to earn carbon credits. The entire gas-fired capacity will employ fuel and cost efficient advanced class turbines. Strategically Located Power Plants: Our projects are situated in close proximity to the sources of fuel or load centres. In addition the geographic spread of power projects in Western, Southern, Eastern and North-Eastern parts of India across seven states will enable us to supply power to different load centres. Mitigation of dependence on Particular region or Fuel Type: The geographic spread and fuel diversification mitigates the dependence on a particular region and fuel type or source Weakness Financial Ratios suggest a Negative Operating Margin for RPower. It has been seeing a decreasing Market Capitalisation. Its stock price has fallen from a high of Rs. 210 in July 2009 to 58.55 in April 2013 . There have been delays in land acquisitions and environment clearances