Reliance Power Jumps 4% After ₹2,000 Crore Solar Power Project Win from Bhutan

Mumbai, May 19, 2025 —
Anil Ambani’s Reliance Power Ltd has made headlines yet again—this time for a strategic leap into cross-border renewable energy. The company’s stock surged by 4% in early trading hours on the Bombay Stock Exchange (BSE) after announcing a significant ₹2,000 crore solar power project awarded by the Kingdom of Bhutan. This marks not just a financial boost for the struggling firm but also underscores the emerging partnership between India and Bhutan in the sustainable energy domain.

Let’s dive deep into the full details of this landmark development.

A Strategic Milestone for Reliance Power

Reliance Power, once considered a shadow of its former self, has been quietly restructuring and realigning its business focus. With the latest solar power contract from Bhutan’s government, the company has signaled a renewed push into clean energy—an area that is gaining prominence in both India and neighboring countries.

According to an official regulatory filing, Reliance Power will be responsible for the engineering, procurement, and construction (EPC) of a 600 MW solar power facility in southern Bhutan. The project is expected to be commissioned over the next 24–30 months and will be financed through a mix of Bhutanese government funding, international green energy loans, and Reliance’s own capital infusion.

Market Response: Share Price Rallies

Investors responded positively to the news. Reliance Power shares opened at ₹18.50, up nearly 4% from the previous close of ₹17.78, and reached an intraday high of ₹19.36. The volume of trades surged by 300% compared to the weekly average, signaling renewed investor confidence in the Anil Ambani-led company.

 Reliance Power Share Price Snapshot (May 19, 2025):

• Previous Close: ₹17.78

• Opening Price: ₹18.50

• Day’s High: ₹19.36

• Day’s Low: ₹17.92

• Volume Surge: +300%

Market analysts have termed this gain as both a “sentiment shift” and a potential “re-rating trigger” for the undervalued stock.

Bhutan’s Renewable Energy Vision

Bhutan, long known for its hydropower dominance, has recently shifted gears to diversify its renewable energy portfolio. The new solar initiative is part of Bhutan’s Vision 2030, aimed at achieving carbon neutrality while ensuring energy security.

This ₹2,000 crore deal with Reliance Power is Bhutan’s largest solar project to date. The government of Bhutan selected Reliance Power through an international bidding process, recognizing its experience in large-scale energy projects, especially in challenging terrains.

Key Project Details

• Project Size: 600 MW solar power generation

• Estimated Investment: ₹2,000 crore

• Location: Sarpang District, Southern Bhutan

• Execution Timeline: 24–30 months

• Power Offtake: Bhutanese national grid with provision for future export to India

• Financing: Multilateral institutions (Asian Development Bank, Bhutanese Sovereign Fund), internal accruals

This project will not only help Bhutan in diversifying its energy sources but also potentially allow cross-border energy export to India, which is battling rising energy demands.

Cross-Border Energy Diplomacy: A Win-Win Scenario

India and Bhutan have a long history of cooperation in the energy sector, especially hydropower. With this solar deal, the scope of cooperation is expanding.

Bhutan's energy surplus during monsoon seasons and India's growing appetite for green energy present a mutually beneficial scenario. By engaging private sector players like Reliance Power, this initiative serves as a blueprint for future public-private collaborations in South Asia’s energy space.

Anil Ambani’s Resurgence Play?

This deal may also be seen as part of Anil Ambani’s larger plan to revive his group’s business image. Once among the top industrialists in India, Ambani’s fortune took a downturn after the split with elder brother Mukesh Ambani and several failed business ventures.

However, recent movements—including debt restructuring, asset monetization, and renewed activity in the power and infrastructure sectors—suggest that Reliance Power and its parent Reliance Infrastructure are looking to rise from the ashes.

Recent Moves by Reliance Power:

• Rights issue to raise ₹1,325 crore (Q1 2025)

• Reduction in consolidated debt by ₹3,000 crore

• Restructuring agreements with IDBI Bank and SBI

• MoU with Indian Railways for solar power supply in Bihar and Jharkhand

The Bhutan project is seen as a culmination of these turnaround efforts and could act as a springboard for future international projects.

Analyst Views: Is the Turnaround Real?

Market experts remain cautiously optimistic. According to Nilesh Mehta, energy analyst at QuantBroking:

“This project certainly puts Reliance Power back on the radar. While execution risks remain due to geography and foreign policy sensitivities, the size and scope of the deal are impressive. If executed well, this can change the trajectory of the stock.”

Another brokerage, InvestMint Capital, has revised its target price for Reliance Power from ₹22 to ₹26, citing improved order book visibility and strategic diversification.

What's Next for Investors?

While today’s 4% surge in share price is encouraging, long-term investors will be watching for the following developments:

1. Execution Timeline Adherence: Any delays may impact cash flows and sentiment.

2. Debt Reduction Continuity: Sustained deleveraging will be critical.

3. New Order Wins: A pipeline of new domestic and international projects is key.

4. Profitability Metrics: EPS and EBITDA improvements will validate the turnaround.

Given its volatile past, Reliance Power will still have to win back market trust—but this Bhutan solar deal is a promising start.

Government Reaction & Industry Implications

Indian and Bhutanese governments both released congratulatory statements. India’s Ministry of External Affairs noted that this project will further solidify bilateral cooperation and “set the tone for a sustainable energy future in the region.”

Meanwhile, India's Ministry of New and Renewable Energy (MNRE) praised Reliance Power’s cross-border success as a model for other Indian companies to pursue global renewable energy contracts.

The development could also influence policy frameworks by encouraging more open bidding for foreign renewable projects and offering sovereign guarantees for Indian EPC players abroad.

A Ray of Hope for Reliance Power?

With a ₹2,000 crore solar project under its belt, Reliance Power has shown it still has the mettle to compete in large-scale infrastructure and energy markets. Whether this deal becomes a stepping stone or a solitary highlight depends on execution, financial discipline, and market adaptability.

For now, investors are watching with renewed interest. And for Anil Ambani, this could just be the beginning of a long-awaited comeback narrative.