News Brief | October 2012
RInfra to offload up to 26% stake in projects
Reliance Power Transmission, a wholly-owned subsidiary of Reliance Infrastructure, plans to offload upto 26 percent stake in Talcher (South India) and North Karanpura (central and west India) transmission projects, media reports suggest.
The company is said to have lost interest in transmission projects as these projects are suffering from some issues. The company has been requesting relief for cost overruns, claiming that the projects would otherwise be unviable.
The progress on the two projects is extremely slow compared with other projects granted to other companies during the same period or even later.
Reports indicate that the company is in talks with strategic players to offload the stake. Reliance Power Transmission, a wholly-owned subsidiary of BSE-listed Reliance Infrastructure, was allotted both these projects in 2010 and is allowed to sell a maximum of 26 per cent stake in the projects till five years from the date of award of contract.
However, the Central Electricity Regulatory Commission (CERC), the apex regulator, has clearly conveyed that no change can be made for the next 25 years for which the project would run.