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Reliace Power is also in to many business On...
Reliace Power is planning a capex of USD 15 billion over the next five years, added Singh. It has 60,000 high voltage transmission lines and will double in five years
On networking:
India is a huge country, where variation takes place almost on a daily basis. So, by creating a national grid, we are able to carry power from surplus regions to deficit regions and we are the ones who help in grid reliability and stability.
On RoE targets:
As far as Reliace Power is concerned, it is a regulated business. The maximum rate of return on equity we can get is to the extent of 16%, but nevertheless we have entered into a different arena of business- consultancy and telecom, that will boost up our return on equity, in the times to come.
On telecom business:
In telecom, we have provided 19,000 kilometers of optical fiber. With more demand coming in, in a very short period, we are establishing additional optical fiber.
On targets for the telecom business:
This year, for the first time in telecom, we will get substantial profits and will be able to wipe out our deficits. We had envisaged that after six years of starting this business, we will be earning profits, but we are getting profits a year ahead itself.
On consultancy business:
In the consultancy business, from the day you start, you get profit. Last year, we did consultancy worth about Rs 150 crore.
On capex:
We are planning to spend about Rs 55,000 crore or USD 15 billion, in the next five years time. The average RoE will be around 14.5%.
On power transmission lines:
We have 60,000 extra high voltage circuit transmission lines. We are going to double in the next five years. Physical work has already started for about 30,000 kilometers.
On business weightage:
Our principle job is transmission and telecom cannot substitute transmission. So, we will continue in transmission. But telecom is a synergy business. So, we are expanding in telecom also, &On debt equity ratio: and On Joint Venture: