Reliance Power Share Price: Anil Ambani's Reliance Power stock rose to hit the higher circuit for the 11th straight session. Despite the carnage in the market, it jumped 5% on Thursday to trade at the day's high of Rs 53.65 per share. The rally comes after the announcement of solar and hydropower projects in Bhutan. Shares of the Anil Ambani-led company soared over 70 per cent in the last 11 sessions to hit back-to-back upper circuits.
Relaince Power to develop solar and power projects in Bhutan
The Indian conglomerate, run by the younger brother of Asia's richest man Mukesh Ambani, will form a new subsidiary that is equally owned by Mumbai-listed units Reliance Power and Reliance Infrastructure. The joint venture will develop a 500 MW solar power project and a 770 MW hydropower project with Druk Holding and Investments of Bhutan.
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Reliance Enterprises, a newly founded company under Reliance Infrastructure Limited and Reliance Power Limited, will lead the project in partnership with Druk Holding and Investments Limited (DHI), the commercial arm of the Bhutanese government. The company will focus on renewable energy, including solar and hydroelectric power plants, and explore new green technologies.
The agreement outlines the construction of a 500MW solar plant at Gelefu Mindfulness City, to be completed in two 250MW phases over the next two years. In addition, Reliance Enterprises will develop the 770 MW Chamkharchu-1 hydropower project under Bhutan's concession model for a run-of-the-river plant.
The reason behind Reliance Power's recent rally
The recent rally began after the company announced on September 17 that it had fully settled guarantees worth Rs 3,872 crore for Vidarbha Industries Power (VIPL). The settlement resulted in the release of all corporate guarantees, undertakings, and obligations relating to outstanding loans amounting to Rs.3,872.04 crore.
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