Reliance Power shares fall after federal auditor report

Last Updated: Fri, Aug 17, 2012 08:39 hrs

Shares in India's Reliance Power fell more than 6 percent on Friday after the country's federal auditor said the company unduly benefited from a government decision allowing the power producer to use surplus coal from its captive block for another project it was not meant for.

Reliance Power, controlled by billionaire Anil Ambani, is developing a 4000 MW project at Sasan in the central state of Madhya Pradesh and was allotted captive blocks to fuel this project. The company later received government approval to use coal from these blocks for another power project being developed by the company.

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