RPower cuts its losses as it focuses on growth
Almost a year before Reliance Power bagged the Tilaiya ultra mega power project (UMPP) in the Hazaribagh district of Jharkhand in 2009, Reliance Infrastructure, a Reliance Anil Dhirubhai Ambani Group, or Reliance ADAG, company, was awarded the Delhi Airport Metro Expressline project. Reliance Infrastructure bagged the second phase of the Mumbai Metro, too, in 2009. That was a phase when the Anil Ambani-led group was on a spree to acquire large infrastructure projects even if they came at highly aggressive quotes. The group, however, decided to exit all the three projects. Admittedly though, there aren’t too many similarities in the three: the power plant and Mumbai Metro Phase 2 have not taken off at all, while the Delhi Expressline was up and running when the group transferred its operations to the Delhi Metro Rail Corporation.
These exits from mega projects have put the spotlight onReliance ADAG and raised questions about whether abandoning them bode well for a group that once aspired to be a big player in the power and infrastructure sectors.