My dear fellow shareowners,
It gives me great pleasure to share with you the highlights of our
Company''s performance in the last one year
As many of you might know, our first operating plant, phase-I of the
1,200 MW, coal based Rosa project located at Shahjahanpur in Uttar
Pradesh, successfully completed its first year of operation in FY 2011.
This resulted in the Company earning operating profit for the first
time in its short history. You will be pleased to know that the plant
is running successfully at a Plant Load Factor (PLF) of over 90 per
cent in the last nine months.
At our last Annual General Meeting in September 2010, I had stated that
we expect to become a 5,000 MW operating company by 2012. I am pleased
to report that we are on track towards successfully achieving this
milestone
We expect to commission two of our coal-based projects, namely the 600
MW Rosa Phase II project, the 600 MW Butibori project at Nagpur,
Maharashtra, and one unit of the 3,960 MW Sasan Ultra Mega Power
Project (UMPP) at Singrauli, Madhya Pradesh, by 2012. Besides, we
shall commission the open cycle phase of India''s largest gas based
power project, the 2,400 MW project at Samalkot, in the current
financial year and the combined cycle phase by the next year. This will
be a record since no gas based power project in India has come up in
such a short period of time
The year 2010-11 also heralded a new beginning in realizing our
commitment towards clean, green power. We emerged as a successful
bidder for a 1 00 MW Solar power project in a competitive bid conducted
by NTPC Vidyut Vyapar Nigam (NWN) under the auspices of the Jawaharlal
Nehru National Solar Mission. We have signed the power purchase
agreement with NWN and commenced developmental work at our site near
Jaisalmer, Rajasthan. The project will be commissioned in 201 3, Upon
completion, it will not only rank as India''s largest solar project but
also as one of the largest solar projects in the world As part of our
commitment towards the environment, we plan to build all our future
coal based projects using state-of-the-art super-critical technology.
Two of our super-critical projects - the 3,960 MW Sasan UMPP and the
3,960 MW Krishnapatnam UMPP became the world''s largest power generation
plant to be registered with Clean Development Mechanism Executive Board
(CDM-EB) of United Nations Framework Convention on Climate Change
(UNFCCC). The registration with CDM-EB allows the projects to earn
Certified Emission Reduction (CER) credits. The projects will generate
approximately 35 Million CERs for the initial 1 0 years of operation
To complement our fast-track execution of power projects, we also plan
to develop our coal mines at an accelerated pace With the approval of
the mine plan of 40 million tonne capacity at our Tilaiya mines, we are
on track to become India''s largest Integrated power and coal mining
company in the next five years. We have also purchased 1 00 per cent
economic interest in three mines in Indonesia to augment our domestic
coal resources and move towards self-sufficiency in coal. This is
particularly important in today''s business environment where shortage of
fuel has become one of the biggest bottlenecks in the sector, thus
allowing us to maintain a competitive edge over our rivals
You will be pleased to know that the Company has also started drilling
work in one of our Coal Bed Methane (CBM) blocks in Sohagpur, Madhya
Pradesh. We believe that our CBM blocks would produce sufficient gas to
power a capacity of up to 2,000 MW in the future.
Performance Review
A snapshot of the Company''s consolidated financial performance during
FY10-11 is provided below for your reference
Total income of Rs. 1,918.03 crore as compared to Rs. 843.38 crore in the
previous year.
Net profit ofRs. 760.44 crore as compared to Rs. 683.89 crore in the
previous year
Earnings Per Share (EPS) (basic and diluted) of Rs. 2.94 as compared to Rs.
2.85 in the previous year.
Corporate Governance
RPower has always maintained the best governance standards and
practices by adopting, as is the norm for all constituent companies of
the Group, the Reliance Group - Corporate Governance Policies and Code
of Conduct. These Policies and Code prescribe a set of systems,
processes and principles, which conform to the highest international
standards and are reviewed periodically to ensure their continuing
relevance, effectiveness and responsiveness to the needs of investors,
both local and global, and all other stakeholders.
Social Commitments
We are developing a large portfolio of projects which require
substantial use of natural resources such as land, water and minerals.
We take adequate care in designing our power generation plants in a
manner that optimizes the utilization of land, thereby bringing down
the aggregate land requirement and minimizing the potential for
disruption and displacement of local communities. We are also adopting
cleaner technologies related to power generation that reduce the
consumption of fuel and water required for plant operations, thereby
conserving a precious natural resource and contributing to a greener
and healthier environment.
Many of the areas in which we are implementing; projects are not very
well developed and it will always be our mission to contribute towards
improving the quality of life of the communities living in these areas.
Indeed, we believe that our success in executing large-scale generation
projects is critically dependent on following a participatory
development-oriented approach that strengthens our bond with the local
population
In order to achieve these objectives, we have made significant outlays
in healthcare, education and livelihood opportunities for local
communities
Our Commitment
Our founder, the legendary Shri Dhirubhai Ambani, gave us a simple
mantra: to aspire to the highest global standards of quality
efficiency, operational performance and customer care. We remain
committed to upholding that vision. Dhirubhai exhorted us to think big.
With your continued support, we will think bigger Indeed not just
bigger but better, creating ever greater value for all our stakeholders
Anil Dhirubhai Ambani
Chairman
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