|Rediff India Abroad Home | All the sections|
Reliance Energy to focus on urban transport
Makarand Gadgil in Mumbai | February 11, 2008 18:31 IST
Anil Ambani controlled power major Reliance Energy [Get Quote] intends to focus on the growing mass rapid urban transport system, especially metro rail, as it seeks to capture at least 60 to 70 per cent share of the Rs 50,000 crore (Rs 500 billion) market. Moreover, it is likely to hive off the infrastructure-related work into a separate business to unlock value for the share-holders.
Speaking to Business Standard on the sidelines of the bhoomi puja for Mumbai's Metro's Versova-Ghatkopar corridor, REL's director, business development, J P Chalsani said, "REL currently enjoys a 100 per cent share of this market, in terms of Mumbai's first metro line and Delhi metro link connecting the airport and railway station. Other players will bag contracts as more projects come along. However, considering our headstart, we hope to retain 60 to 70 per cent of the market share".
REL is executing metro railway projects worth Rs 4,756 crore (Rs 47.65 billion). The company has been short-listed for projects amounting to another Rs 10,682 crore (Rs 106.82 billion), including the 56 km long Rs 8,482 crore (Rs 84.82 billion) Hyderabad Metro project and the 22 km long Rs 2,200 crore (Rs 22 billion) Kochi Metro rail project.
The company has also bid for the second phase of the Mumbai Metro rail project connecting Mankhurd and Charkop. The cost is pegged at Rs 6,500 crore (Rs 65 billion).
"MRTS will be the growth driver of REL. We will participate in the bidding process of every economically viable project under the private-public partnership (PPP) model. MRTS is the way ahead for rapidly urbanising India as it connects the best-run cities throughout the world", he added.
Chalsani admitted they were considering the option of surveying and studying the traffic needs of cities which have not yet announced MRTS projects, but are faced with the need for such projects.