Piramal group withdraws insolvency application against Reliance Power
Piramal Capital and Housing Finance Limited has withdrawn the insolvency application made against Reliance Power Limited and one of its subsidiaries — Reliance Natural Resources Limited (RNRL) — under Section 7 of the Insolvency and Bankruptcy Code. The company said in an exchange filing today.
Piramal Capital and Housing Finance Limited in March this year filed the insolvency application against Reliance Power and RNRL in relation to financial claim of Rs. 526.10 Cr due from RNRL. The company was engaged in bilateral discussions to resolve the matter outside IBC and taking requisite steps.
Reliance Power is a part of the Reliance Group owned by Anil Ambani, the younger brother of Mukesh Ambani.
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 large portfolio of power generation capacity, both in operation as well as capacity under development.
On a consolidated basis, Reliance Power made Rs 7,687 crore in revenue and booked Rs 556 crore in losses in the 2021-22. In the previous year, the company earned Rs 8,388 crore in revenue and made a profit of Rs 453 crore.
The company has close to 6000 MW of operational power generation assets. The projects under development include three coal-fired projects to be fueled by reserves from captive mines and supplies from India and elsewhere; one gas-fired projects; and twelve hydroelectric projects, six of them in Arunachal Pradesh, five in Himachal Pradesh and one in Uttarakhand.
Reliance Power’s project portfolio also includes 3,960 MW Sasan Ultra Mega Power Project (Madhya Pradesh). 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.
As on 31 March 2022, the Company had 36 subsidiaries and 3 associates under its fold.
The Company has delayed/defaulted in repayment to its lenders. The company in its annual report for 2021-22 has said that it was in discussion with its lenders for resolution.
Also Read: Creditors take Reliance Infra, Reliance Power to insolvency court a day after exit of Anil Ambani
