Reliance-Backed Infra Busines Subsidiaries to Recover Rs 21,413 Crore Regulatory Assets in 4 Years After Supreme Court Order

On Friday share price of Reliance Infrastructure Limited jumped over 3 per cent to its intraday high. As of 11.21 am IST, the stock price was trading at 285.80 per share, up by 1.4 per cent

Reliance Infrastructure Limited has announced that its material subsidiaries, BSES Yamuna Power Limited and BSES Rajdhani Power Limited, are set to recover approximately Rs 21,413 crore of Regulatory Assets over a period of 4 years. This significant development follows a judgment pronounced by the Hon'ble Supreme Court on August 6, 2025. The Delhi Electricity Regulatory Commission (DERC) has recognized these Regulatory Assets. 

The Supreme Court's judgment stems from Writ Petitions and Civil Appeals filed by the BSES Discoms in 2014, which raised issues concerning non-cost reflective tariff, the unlawful creation of Regulatory Assets, and their non-liquidation. After extensive hearings involving various State Governments and State Electricity Regulatory Commissions (impleaded per an order dated October 23, 2024), the Supreme Court reserved its judgment on February 20, 2025, on the creation and continuation of Regulatory Assets by Electricity Regulatory Commissions. The Court has now disposed of these petitions and appeals.

In its judgment, the Hon'ble Supreme Court has provided clear guidelines for the recovery of Regulatory Assets. Specifically, it has laid out ten sutras to examine the issue of Regulatory Assets within the tariff determination regime, emphasising the duties and accountability of Electricity Regulatory Commissions (ERCs) and the powers of the Appellate Tribunal for Electricity (APTEL) to prevent regulatory failures [5(a)]. 

Furthermore, nine (9) clear directions have been issued to ERCs and APTEL regarding cost-reflective tariff determination, the creation and amortisation of Regulatory Assets, and APTEL's oversight to monitor the implementation of these directions by ERCs [5(b)]. 

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About the Company

The Reliance Group, spearheaded by its prominent entities Reliance Infrastructure Limited and Reliance Power Limited, has achieved a remarkable financial milestone, declaring both companies’ debt-free with no outstanding loans from banks or financial institutions. This strong financial position is underpinned by a robust net worth and annual turnover, each totalling Rs 33,000 crore, and a substantial market capitalisation of approximately Rs 45,000 crore, supported by a vast shareholder base exceeding 4 million. Reliance Infrastructure Limited actively engages in the energy sector, particularly in power distribution in Delhi and power generation, while also venturing into defence manufacturing and significant infrastructure development via SPVs, including the Mumbai Metro. 

The company has a market cap of over Rs 11,000 crore. The stock has given returns of 45 per cent from its 52-week low of Rs 195 per share. The promoters of the company own 19.05 per cent, FIIs own 10.26 per cent, DIIs own 1.38 per cent, the Government own 0.01 per cent and the public & others own the rest of the stake, i.e., 69.29 per cent as of June 2025.

Disclaimer: The article is for informational purposes only and not investment advice.