Anil Ambani (Picture credit: Reuters)
NEW DELHI: The
Reliance group
led by Anil Ambani on Wednesday launched a new company for investing in Bhutan’s renewable energy sector, starting with building 1.2 gigawatts of solar and
hydropower projects
that industry watchers said could entail investments of up to $1 billion and mark a revival of fortunes for the beleaguered entity after becoming nearly debt free recently.
Named
Reliance Enterprises
, the new entity has been jointly promoted by Reliance Infrastructure Ltd. and
Reliance Power
Ltd., which became debt-free recently, for undertaking projects in partnership with Bhutan’s sovereign commercial and investment arm,
Druk Holding and Investments
Ltd. (DHI). Reliance will also collaborate with Bhutan’s state-owned companies for infrastructure projects supporting the country’s net-zero goals.
Implementation of smart distribution and metering systems throughout Bhutan will be an area of special focus, the company said in a statement.
The partnership agreement was signed today by Harmanjit Singh Nagi, president (corporate development), Reliance Power and Ujjwal Deep Dahal, CEO of GHI, in the presence of Anil Ambani.
The 500 MW solar plant is to be developed in Bhutan’s Gelephu Mindfulness City in two phases of 250 MW each over the next two years. The Reliance-DHI partnership will also extend to developing the 770 MW Chamkharchhu-1 hydroelectric project, marking the first joint venture with an Indian private sector company in Bhutan’s hydro sector.
Land for the solar project has been earmarked and site assessments as well as technical studies are ongoing. Once completed, the solar plant will be the largest of its kind, surpassing all existing solar installations in the country. It will also mark the single largest investment in Bhutan’s renewable energy sector and the largest
foreign direct investment
by an Indian company in the country.
“The partnership between Reliance Enterprises and Druk Holding leverages the strengths of both organizations in the areas of green energy and development. We are pleased to be partnering with Reliance and together we are committed to delivering world-class
clean energy projects
that will benefit both India and Bhutan,” the company statement quoted Dahal as saying.
Reliance Group is a major conglomerate with a diverse presence across multiple sectors of the economy. Among its key ventures is Reliance Power, a leading power generation company in India with a total installed capacity of 5,340 MW, including the 4,000 MW Ultra Mega Power Project
in Sasan, Madhya Pradesh—currently the largest integrated thermal power plant in the world.
Reliance Infrastructure Limited is active in the energy sector, focusing on power distribution in Delhi and power generation. The company also has interests in defense manufacturing and plays a key role in infrastructure development through special purpose vehicles (SPVs), including projects like the Mumbai Metro and various airport developments.
