Mumbai: Reliance Industries and public sector gas firm GAIL India will together set up multi-billion-dollar global scale petrochemical plants in 10 countries, including Qatar, Australia and Russia.

The two companies would also co-operate in areas of distribution and marketing of petrochemicals, including 'product-swapping' in the domestic market as well, reports quoted a GAIL official as saying.

Reliance and GAIL would float a special purpose vehicle (SPV) with equal stake to set up petrochemical plants overseas.

The two companies have set up a working group to identify areas for cooperation prior to the formation of SPV.

Reliance and GAIL have set themselves a three-year deadline for identifying and commencing work on the mega petrochemical complex.

The two companies had signed a memorandum of understanding (MoU) on 4 December listing Qatar, Abu Dhabi, Bahrain, Vietnam, Australia, South Africa, Angola, Mexico, Russia and former Soviet block countries as possible countries for setting chemical projects of up to two million tonnes capacity.
 
"RIL and GAIL believe that there is a huge demand for petrochemical products worldwide. This would need new capacities and therefore, opportunity of setting up global size petrochemical complexes, preferably gas based, in gas-rich countries is being explored,'' the official said.

Depending on the geographical location of market centres for certain grades vis-a-vis the production centres and logistic advantages, the two companies would also consider product swapping for maximising realisation, the official said.
 
Gail India board, meanwhile, approved payment of interim dividend of 40 per cent on the paid-up equity share capital of the company for the financial year 2007-08.

Reliance shares dropped over two per cent to close at Rs2,824 on the Bombay Stock Exchange.