Reliance Utilities & Power to raise Rs 1,000 cr of debt

Reliance Utilities and Power, which runs captive power plants for Mukesh Ambani-led Reliance Industries, today said it plans to raise Rs 1,000 crore by way of debt. The board of directors of Reliance Utilities and Power Pvt Ltd will meet tomorrow to "consider the issue of unsecured, redeemable non-convertible debentures" for raising up to Rs 1,000 crore, the company said in a regulatory filing. Reliance Utilities and Power (RUPL) did not specify the need for the fund raising exercise. The company had earlier sought to raise Rs 500 crore in June, 2009, for "general corporate purposes" through issue of debt securities. RUPL is primarily engaged in the business of setting up, operating and maintaining captive power plants at various manufacturing locations of Reliance Industries (RIL). RUPL supplies power and steam to RIL's facilities, such as those located at Hazira and Jamnagar. As of June, 2009, RUPL was operating and maintaining over 1,500 MW of power generation capacity. The company has entered into a Power Purchase Agreement with RIL that is valid up to the 2015-16 fiscal. It had total secured loans worth about Rs 668 crore from banks as on March 31, 2009. RUPL earned a net profit of Rs 243 crore in 2008, up from Rs 167 crore in the previous year.