Reliance Power Limited (RPower) has issued a statement clarifying its position following Bank of Baroda's recent classification of a Reliance Communications (RCom) loan as fraudulent. The company emphasizes that this development has no impact on its operations, financial performance, or stakeholders.

Key Points

• RPower operates as an independent entity with no financial connections to Reliance Communications.
• The fraud classification by Bank of Baroda pertains to matters dating back approximately 10 years.
• Mr. Anil D. Ambani, who is involved in the Bank of Baroda case, has not been on RPower's board for over 3.5 years.
• Reliance Communications is currently under the management of a Committee of Creditors, led by SBI and overseen by a Resolution Professional.

Legal Status

RPower noted that the matter concerning Reliance Communications and Mr. Anil D. Ambani remains sub judice, pending before the National Company Law Tribunal (NCLT) and other judicial forums, including the Supreme Court, for the past six years.

Company Focus

In its statement, Reliance Power reaffirmed its commitment to its business plans and value creation for all stakeholders. The company, which is part of the Reliance Group, highlighted its position as one of India's leading private sector power generation companies with an operating portfolio of 5,305 megawatts.

Sasan Power Plant

RPower also showcased its flagship project, the 3,960-megawatt Sasan Power Limited, described as the world's largest integrated coal-based power plant. The company noted that Sasan Power has consistently ranked as the best operating power plant in India for the past seven years.

This clarification from Reliance Power serves to distance the company from the ongoing issues faced by Reliance Communications and reassure its stakeholders of its independent operations and focus on its core power generation business.

Reliance Power Limited (RPower) and Reliance Infrastructure Limited (RInfra) shares surged to hit their 5% upper circuits for the second consecutive trading session, outperforming broader market indices.

Stock Performance

Reliance Infrastructure reached an intraday high of Rs 278.95, gaining Rs 13.25, while Reliance Power climbed to Rs 46.22. The rally in RPower shares was primarily driven by recent developments in its renewable energy business.

Renewable Energy Expansion

Reliance Power has made significant strides in expanding its clean energy portfolio. The company recently incorporated GDL – Reliance Solar Pte Ltd, a joint venture in Bhutan's Gelephu Mindfulness City. This 50:50 partnership between Green Digital Private Ltd and Reliance Enterprises Private Ltd has bolstered RPower's renewable energy pipeline, which now includes:

• Over 3 GW of solar DC capacity
• 3.5 GWh of battery energy storage system capacity

This expansion underscores Reliance Power's commitment to sustainable energy solutions and its strategic focus on the growing renewable sector.

Regulatory Scrutiny

While the stocks are rallying, it's worth noting that the Enforcement Directorate (ED) has been investigating alleged money laundering in a Rs 17,000 crore bank loan fraud case involving Anil Ambani's Reliance Group. As part of the investigation, the ED has:

• Questioned senior executives of the Reliance Group
• Requested loan details from nearly 20 banks, including State Bank of India and Bank of Baroda

Annual Performance

Despite recent regulatory challenges, both Reliance Power and Reliance Infrastructure have shown strong performance over the past year:

These returns significantly outpaced the performance of major Indian indices, with both the Nifty and Sensex posting negative 3.00% returns over the same period.

The robust gains in RPower and RInfra shares, coupled with Reliance Power's expanding renewable energy portfolio, suggest investor optimism despite ongoing regulatory scrutiny. However, investors should remain cautious and monitor developments in the ED investigation, which could potentially impact the companies' future performance.