statesman news service
MUMBAI, 6 JUNE: Reliance Industries Limited plans to invest Rs 1,50,000 crore in various sectors over the next three years, according to its chairman Mr Mukesh Ambani.
Mr Ambani, while addressing the company’s 39th annual general meeting here today, informed the shareholders that the company “is debt-free on a net basis and is singularly focused on various issues of national importance as it is making huge investments at a time of global economic slowdown. Investment in manufacturing and retail will spur the growth.”
Brushing aside rising concern over dwindling oil and gas production from its wells and gas fields, particularly in Kirshna Godavari Basin D6 bed, Mr Ambani tried to assure the shareholders
“RIL will remain among the top five petrochemical producers in the world as it plans to increase capacity from 15 metric tons to 25 metric tons per day. The company looks ahead to start operation at Silvassa plant later this year.”
He also spoke of huge potential likely to be unleashed at its shale gas acreage in the United States where the production has reached 11 million standard cubic metres.
Mr Ambani told the AGM that the company had raised $2 billion loan from German banks to finance petrochemical plant expansion programme.
The loan facility has a door-to-door (that is tenure) maturity of 13 years and is backed by German credit insurance provider Euler Hermes SA. The loan will be used to finance goods and services procured from German suppliers for upgrading projects at Jamnagar, Hazira, Silvassa and Dahej, he said.
The chairman’s speech at the AGM, however, failed to lift the RIl stock on Dalal Street. Barring for a short time in early morning deals, the share remained subdued and in the negative zone.
It traded within a range of Rs 788.20 and Rs 802 on the Bombay Stock Exchange and Rs 788.10 and Rs 803.90 on the National Stock Exchange.
Traders said Mr Ambani’s speech spoke eloquently on raising petrochemical production capacity and highlighted the increase in retail business, but the markets were looking ahead to more details about proposed fourth generation or 4G project for which a new subsidiary Reliance Jio Infocomm Limited was created last year.
The RIL stock closed 1.03 per cent down at Rs 792.30 on the BSE and 1.25 per cent down at Rs 792 on the NSE.
The chairman’s speech contained a brief mention about the much-awaited proposed 4G service launch, wherein he informed the shareholders and markets
"We have finalised key vendors for the launch of 4G services. We will increase staff in the telecommunications business from 3,000 to 10,000 next year.”
Reliance Jio has acquired pan-India licence for the launch of broadband services, the chairman added.