Reliance Power Shares Surge 5% After SECI Debarment Withdrawal

New Delhi, Dec 4 (PTI) Shares of Reliance Power jumped 5 per cent on Wednesday after Solar Energy Corporation of India (SECI) said it has withdrawn the debarment notice issued to the company enabling the Anil Ambani-led firm to participate in future tenders of the public sector entity.

The stock climbed 4.98 per cent to Rs 41.07 -- its upper circuit limit -- on the BSE.

At the NSE, it surged 4.98 per cent to hit the highest trading permissible limit for the day.

SECI, which serves as the implementing agency for renewable energy projects, had on November 6 debarred Reliance Power Ltd and Reliance NU BESS Ltd from participating in any of its tenders for three years for allegedly submitting "fake documents".

On November 13, SECI had also slapped a show cause notice on Anil Ambani-run Reliance Power, asking why criminal proceedings should not be initiated after a fake bank guarantee was submitted by its unit.

In the latest statement on Tuesday, SECI said the withdrawal of its debarment notice is without prejudice to its right to take all actions in accordance with the law.

Following the legal proceedings related to this matter, the debarment notice issued to Reliance Power Ltd has been withdrawn with immediate effect, SECI said.

Meanwhile, Reliance Power in a stock exchange filing said with the withdrawal of SECI's debarment notice, "the company and its subsidiaries, except Reliance NU BESS Ltd (formerly known as Maharashtra Energy Generation Limited), are eligible to participate in all tenders issued by SECI".