M A I N   N E W S

Anil Ambani enterprises in power

Mumbai, June 19
Anil Ambani today announced a new group “Anil Dhirubhai Ambani Enterprises” to control the three companies that came under his fold after the settlement of Reliance ownership issues with his brother Mukesh Ambani and unveiled a
Rs 80,000 crore plan in power generation.

He also announced that nearly Rs 2,000 crore would be pumped into Reliance Capital whose board today elected him as its Chairman.

Reliance Capital, Reliance Energy and Reliance Infocomm have gone under the control of Anil under the settlement plan announced by his mother Kokilaben yesterday.

Soon after REL re-elected him as its Chairman today, the younger Ambani announced massive expansion plans in gas-based, coal-based and hydro and nuclear power generation in the next 10 years.

He expressed the intention to form private-public partnership for nuclear power generation. REL also has “deep commitment” in non-conventional power — solar and wind power, he added.

“A number of friends in the media asked me—what will this new group look like? I refer this new group as Anil Dhirubhai Ambani Enterprises,” Anil said after the board meeting of Reliance Energy here today.

Apart from Reliance Capital, Anil also announced Rs 1,000 crore capital infusion in Reliance Energy and foray into greenfield infrastructure projects like airport. The new group would bid for airport projects of both Delhi and Mumbai, he said.

Dispelling fears of cash crunch in carrying out the expansion, he said potential investors had been talking to him for investing in the three companies REL, Reliance Infocomm and Reliance Capital.

Moreover, he said the group would list Reliance Infocomm in bourses in due course to mop up additional capital.

Reliance Capital would be made a financial power house offering a spectrum of financial products, he said.

“ADA Enterprise Group will invest Rs 1,000 crore in Reliance Energy. I personally believe this as reflection of my own personal confidence on the future growth prospects, valuable management team and shareholders of the company,” Reliance Energy Chairman Anil told reporters here.

After attending the board meeting of Reliance Energy and Reliance Capital, he said this proposed investment would be at Rs 573 per share price, representing 8 per cent premium in a six-month average price.

“Reliance Capital is to turn into a full spectrum of financial service power house. ADA Enterprise Group will also invest Rs 2,000 crore in the company at a price of Rs 228 per share at 40 per cent premium at a six-month average high price,” Anil said.

Meanwhile, Anil today said the Reliance Industries Limited (RIL) Board has given the approval for the demerger of the company.

“The RIL Board met yesterday and gave in-principle approval to demerger,” Anil told reporters here after the Board meetings of Reliance Energy Limited (REL) and Reliance Capital Limited (RCL) this afternoon.

He said the three companies under his fold — REL, Reliance Infocomm and RCL — would also be demerged.

The RIL Board, headed by Mukesh Ambani, approved the demerger plan as part of separation of group companies Reliance Energy and Reliance Capital to create a separate entity for younger sibling Anil Ambani. — PTI