Reliance Power Shares Surge to New Heights

Reliance Power shares have been on a remarkable rise, reaching the upper limit of 5% for the 11th consecutive session on Thursday. The stock price hit Rs.53.65, its highest since January 2018. Over this period, the stock has soared by 71%, driven by the company’s efforts to become nearly debt-free and its focus on renewable energy, which has increased investor confidence.

Expansion Plans in Bhutan

On October 2, 2024, Reliance Power revealed its plans to expand into Bhutan by developing solar and hydroelectric power projects. They have teamed up with Druk Holding and Investments Ltd. (DHI), the investment branch of the Royal Government of Bhutan. Together, they aim to build important renewable energy projects, such as a 500 MW solar plant and a 770 MW hydroelectric project.

Details of the Projects

The 500 MW solar project will be built in Gelephu Mindfulness City and will be completed in two phases over the next two years. Once finished, it will be the largest solar installation in Bhutan. Meanwhile, the Chamkharchhu-1 hydro project is designed to enhance Bhutan's power generation capacity, classified as a run-of-the-river project. This partnership is notable as it represents the largest foreign investment by an Indian private company in Bhutan's renewable energy sector.

New Company Formation

To manage these initiatives, Reliance Group has set up a new entity called Reliance Enterprises, which will focus on clean energy investments and smart energy solutions in Bhutan. This joint venture combines efforts from Reliance Infrastructure and Reliance Power, specifically aimed at boosting renewable energy in the country.

Strong Recovery in September

Both Reliance Infrastructure and Reliance Power experienced a strong recovery in September, with their stock prices increasing by over 60%. This recovery highlights the companies' resilience and growing investor interest.

About Reliance Group

Reliance Group, led by Anil Ambani, is a major conglomerate with interests across various sectors. Reliance Power is one of India's leading power generation companies, boasting an installed capacity of 5,340 MW, which includes the world’s largest integrated thermal power plant, the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh.

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Reliance Infrastructure focuses on power distribution in Delhi and is involved in defense manufacturing and infrastructure projects, such as the Mumbai Metro.