Rel Infra lines up Rs 2,500 cr capex for this fiscal

Reliance Infrastructure, the power utility and construction arm of the Anil Dhirubhai Ambani Group (ADAG), said it has planned a capital expenditure of Rs 2,000-2,500 crore for this fiscal.

Lalit Jalan, chief executive officer, Reliance Infrastructure, said the company was not worried about order book visibility as group firm Reliance Power has lined up projects worth Rs 1 lakh crore over the next 7-8 years.

“Even though we maintain an arm’s length distance (with Reliance Power), these projects provide visibility to our company,” he said while announcing a 40% jump in revenues in the last quarter of financial year 2008-09 to Rs 2,409 crore. Profits, however, grew modestly to Rs 346 crore, up 11% year-on-year in the quarter.

Jalan said the company’s two subsidiaries in Delhi — BSES Rajdhani and BSES Yamuna — had become eligible for a Rs 174 crore bonus from the government as they met their targets of reducing transmission and distribution losses in the capital. He said the financial closure for its Western Region System Strengthening and Parvati Coal Dam projects is progressing smoothly.

Full year revenues were up 44% to Rs 10,606 crore while profits were up 5% to Rs 1,139 crore. The company’s construction wing had an order book of Rs 20,625 crore as of March 2009. It did not win any new projects in the quarter.