Reliance Infrastructure Limited (RInfra) has been awarded a significant 390 MW interstate transmission system-connected solar power project with Battery Energy Storage System (BESS) by NHPC, a leading Navratna public sector enterprise. This development marks a substantial expansion of Reliance Group's renewable energy portfolio.

Project Details

The project encompasses the installation of 700 MWp of solar DC capacity and 780 MWhr of Battery Energy Storage System capacity. This addition will significantly bolster Reliance Group's clean energy pipeline, which now stands at over 3 GWp of Solar DC capacity and more than 3.5 GWhr of BESS capacity.

Competitive Bidding

RInfra secured the project through a competitive bidding process, with the winning tariff set at INR 3.13/kWh. The tender attracted considerable interest from the industry, with 15 entities participating and 14 qualifying for the e-reverse auction. Notably, the tender was oversubscribed by nearly 4 times, highlighting the growing focus on dispatchable renewable energy solutions in India.

Reliance Group's Growing Renewable Portfolio

With this new project, Reliance Group has solidified its position as India's largest player in the integrated Solar + BESS segment. Reliance Power, a listed entity within the group, already boasts a renewable energy portfolio of nearly 2.5 GWp of Solar and 2.5 GWhr of BESS capacity.

Strategic Significance

This project award underscores Reliance Group's commitment to becoming a leading player in India's renewable energy sector. It aligns with the group's strategic vision to transition towards cleaner energy sources and play a pivotal role in shaping the country's sustainable energy future.

Market Impact

The successful bid for this large-scale solar-plus-storage project demonstrates Reliance Infrastructure's growing capabilities in the renewable energy sector. It also reflects the increasing importance of energy storage solutions in India's power market, as the country aims to integrate higher shares of variable renewable energy into its grid.

As India continues to push for ambitious renewable energy targets, projects like this are expected to play a crucial role in ensuring grid stability and round-the-clock power supply from clean energy sources. Reliance Infrastructure's success in securing this project positions the company at the forefront of this important transition in India's energy landscape.

The National Company Law Tribunal (NCLT) Mumbai has admitted a Corporate Insolvency Resolution Process (CIRP) petition against SU Toll Road Private Limited, a wholly-owned subsidiary of Reliance Infrastructure . The petition, filed by State Bank of India (SBI), cited a default amount of ₹358.70 crore, including interest.

Project Details and Default

SU Toll Road Private Limited operates a toll road project on the Salem-Ulundurpet section of National Highway 68 in Tamil Nadu. The project, awarded on a Build, Operate and Transfer (BOT) basis, has a concession validity until January 14, 2033. According to the NCLT order, the company defaulted on loan repayments starting June 1, 2023, leading to the accounts being classified as Non-Performing Assets (NPAs) in August 2023.

NCLT's Decision

The NCLT, after careful consideration of the arguments presented by both parties, decided to admit the insolvency petition. The tribunal appointed Sanjay Kumar Mishra as the Interim Resolution Professional (IRP) and declared a moratorium on all proceedings against the company.

Key Points from the NCLT Order

1. Debt Verification: The NCLT verified the existence of financial debt and default, satisfying itself that the default amount exceeded the minimum threshold of ₹1 crore as prescribed under the Insolvency and Bankruptcy Code (IBC).

2. Moratorium: As per Section 14 of the IBC, a moratorium has been declared, prohibiting the institution or continuation of suits, transferring of assets, or any recovery actions against the corporate debtor.

3. IRP Appointment: Mr. Sanjay Kumar Mishra has been appointed as the IRP to take charge of the company's assets and manage its operations as a going concern.

4. Public Announcement: The IRP is directed to make a public announcement for the initiation of CIRP and call for the submission of claims.

Reliance Infrastructure's Statement

Reliance Infrastructure, in its statement, mentioned that the company's entire exposure to SU Toll Road Private Limited is already provided for, and no further impact is expected from this development.

Implications and Next Steps

The admission of the insolvency petition marks the beginning of the resolution process for SU Toll Road Private Limited. The IRP will now take control of the company's assets and invite claims from creditors. The future of the toll road project and its operations will depend on the outcome of the CIRP, which aims to find a resolution that balances the interests of all stakeholders involved.

This case highlights the ongoing challenges in the infrastructure sector and the use of the insolvency resolution process to address financial distress in large-scale projects. As the CIRP progresses, it will be closely watched by industry observers for its potential implications on other infrastructure projects and the broader sector.