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LETTER TO SHAREOWNERS:
My dear fellow shareowners,
It gives me great pleasure to share with you the highlights of another growth-filled and successful year.
You will be pleased to know that we have doubled our operational capacity from 1,240 MW to 2,545 MW during this year. In addition to our 1,200 MW power plant at Rosa, Uttar Pradesh and the 40 MW Solar PV plant at Dhursar, Rajasthan, we have added 600 MW capacity at Butibori, Maharashtra, 660 MW in our flagship 3,960 MW Sasan Ultra Mega Power Project (UMPP) in Madhya Pradesh, and 45 MW of Wind Power capacity at Vashpet, Maharashtra. We have also completed installation of almost 1,000 MW of capacity in our Samalkot Gas Power Project which is awaiting gas allocation from the government.
The operating performance of our plants during the year was extremely satisfactory. Despite the major coal shortages plaguing the country, the 1,200 MW Rosa plant reported very good performance. The coal based plant operated at an availability of 92 per cent for the year, and generated nearly 8 billion units compared to 4.2 billion units in the previous year. Higher generation and operational efficiencies resulted in significantly better financial performance, and profit from the plant also doubled from the previous year.
The 40 MW Solar PV plant, the largest solar plant in the Country, generated 60 million units of electricity in its first year of operation. The plant registered a record monthly PLF of 23 per cent in March 2013. This would be undoubtedly one of the best performing solar plants in the Country.
In another landmark development, we started coal mining from our Moher and Moher-Amlohri mines in September 2012. These mines were awarded to us along with the Sasan UMPP. We have deployed world class equipment at the mines and started production in record time. These mines will have peak capacity of 20 million tonnes per annum and will be the largest mines in India in terms of volume handled. These are our first operational mines and will go a long way in establishing our credentials as one of the largest integrated power and resources utility players in the Country.
The most significant accomplishment this year is the successful commissioning of the first 660 MW, super critical unit of the 3,960 MW Sasan UMPP. The Sasan UMPP is the largest integrated power plant and coal mining project in the world. We had won the project through tariff based competitive bidding, and have commissioned the project ahead of the bid schedule. Electricity generated from the project is expected to benefit 35 crore Indians spread across the length and breadth of the Country. This is indeed one of the proudest moments in the early days of our operating history. I am confident that the Sasan UMPP will set new benchmarks in operating efficiencies of power plants and coal mining in the country, and help our fellow countrymen to avail affordable and reliable electricity for 25 years.
Your Company is committed towards sustainable development for a greener tomorrow. In our quest to become one of India's largest renewable energy companies, we will commission the 100 MW Concentrated Solar Power (CSP) project in Dhursar, Rajasthan this year, to supplement the already operating 40 MW Solar PV plant and 45 MW Wind Power capacity.
Your Company has also made significant progress in the initial development activities in Indonesia, where we own three coal mines capable of producing up to 30 million tonnes per annum.
Fuel availability is currently the biggest challenge faced by power generation companies in the country. Our strategy of owning large captive coal resources is expected to provide us with a significant competitive advantage compared to our peers. These resources will not only provide self-sufficiency for a large proportion of our assets, but also allow us to provide cost competitive and reliable power to large parts of our country.
The highlights of the Company's consolidated financial performance for the year are:
1. Total income of Rs. 5,284 crore as compared to Rs. 2,767 crore in the previous year.
2. Net profit of Rs. 1,011 crore as compared to Rs. 867 crore in the previous year.
3. Earnings Per Share (EPS) (basic and diluted) of Rs. 3.61 as compared to Rs. 3.09 in the previous year.
Your Company has always maintained the highest 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.
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 optimises the utilisation of land, thereby bringing down the aggregate land requirement and minimising 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 precious natural resources 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 is 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 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.
Thank you, shareowners, for your continued support in our journey of delivering consistent, competitive, profitable responsible growth.
Anil Dhirubhai Ambani