Reliance Industries plans Rs78,000 cr outlay on energy projects
30 August 2014
The Mukesh Ambani-controlled Reliance Industries Ltd is preparing to invest $13 billion (Rs78,000 crore) in its energy projects; part of its recently revealed plans to invest as much as Rs1.8 lakh crore across its business by 2016.
This includes a new 400,000 barrels per day (bpd) crude refinery at its Jamnagar complex, which is already the largest in the world. The new facility will be used to refine cheap heavy crude that is now increasingly sold in Asia.
The two RIL plants in Gujarat can process about 1.4 million bpd of oil.
According to a Reuters report, the company has sought the approval of the environment ministry to invest Rs7,7300 crore to build a new refinery and some polymer units. It also wants to shift a 450 megawatt power plant from gas-based to coal-based.
The environment ministry has asked to Reliance to comply with certain conditions before approval of the projects.
The company has a cash pile of more than Rs80,000 crore now, and can leverage this cash for organic growth even if it does not go for acquisitions. Apart from the refineries, it can invest hefty amounts in its media and telecom business as well.
However, before making further moves, it might wait for the central government's decision on the gas pricing issue which is due at the end of September.