Reliance Power rises 3% as firm approaches HC for early allocation of coal

NEW DELHI: Shares of Reliance Power rose over 3 per cent in Friday's session after the Anil Ambani-led company approached the Delhi High Court seeking early allocation of coal to its power plant in Maharashtra.

The company has made the ministries of coal and power, Central Electricity Authority and Coal India respondents to the case, ET reported.

Following the development, the stock rose over 3 per cent to hit a high of Rs 42.85 on BSE, eventually closing at Rs 41.55, up 3.10 per cent.


Reliance Power had in 2008 obtained a letter promising allocation of 1.23 million tonnes of coal for unit one of 300 MW of the Butibori power plant from Coal India. Unit two of the project has fuel supply agreement with Coal India. The plant has a long-term power purchase agreement with group firm Reliance Infrastructure that supplies power to Mumbai city.

The letter of allocation (LoA) was awarded to unit one of Butibori plant through the erstwhile screening committee route, a senior coal ministry official told ET.