MUMBAI: Repayment delays and asset impairments at Reliance PowerNSE -11.38 % are adding to short-term debt concerns at the Anil Dhirubhai Ambani Group (ADAG), where other businesses lately faced financial stress.
Reliance Power has booked impairment and write-offs worth Rs 4,170 crore in the March quarter. This is a one-time exercise. But inability to pay installments on the 125-mw Rajasthan solar power plant, and failure to meet milestones relating to the Samalkot gas-based unit result ..
As on March 31, the company’s current liabilities rose to Rs 18,208.45 crore, widening the gap from current asset of Rs 5,959.28 crore.
Late Friday, the company reported net loss of Rs 3,558.51 crore in the January-March quarter, dented by the impairment and writeoff, as against a profit of Rs 189.21 crore a year ago. Total income in the quarter declined to Rs 1,687.86 crore from Rs 2,321.68 crore. The company made a withdrawal of Rs 1,017 crore from its general reserves, reducing the impact of the one-time impairment and writeoff. Auditors of the company highlighted that the losses would have been higher without this.
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Reliance Power undertook impairment on its gas-based Samalkot unit and its concentrated solar power (CSP) project in Rajasthan.
“Impairments are one-time exceptional items and are resulting in a notional loss. Impairment of gas-based assets has been taken after seven years due to industrywide issue of non-availability of domestic gas, which has affected entire 24,000 mw of gas-based capacity in the country,” Kulkarni said. “CSP impairment was primarily due to pioneering technology performance, which though improving continuously, is yet to reach commercial viability.”
In case of the gas-based Samalkot power plan ..
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