In the recently held Annual General Meeting for shareholders of Reliance Industries Limited (RIL), Mukesh Ambani announced that a massive investment of Rs 1,50,000 crore will be made for the expansion of the company five major verticals. However, apart from RIL, MukeshAmbani owned power and port ventures are also preparing to set the mark. These companies are planning to satiate the growing industry demand by increasing their capacity.
Reliance Utilities & Power Limited will approximately spend about INR 10,000 crore to add 2,600 Mw of capacity in the coming years. This unlisted company will also set up new plants in Jamnagar, Dahej and Hazira. These plants will meet the increasing power requirements of all RIL’s units. Reliance Ports & Terminal Limited- ports arm of RIL, will build up new berths to handle the exponential demand of liquid, solid cargo and coal imports.
The companies have applied to the banks to increase their fund limit to Rs 8,000 crore. These funds will be utilized for the expansion plans of both the companies. These companies stand as the backbone to RIL’s operations by affiliating them with vital infrastructure for the current manufacturing plants.
By strengthening its back-end support of port and power companies, RIL is meticulously working on accelerating its petrochemical production capacity. These indigenous companies will be helpful in preparing RIL to meet the increasing energy demands of the country. RIL is expected to invest about $ 8 billion in its petrochemical sector over the next five years.Ambani announced the future plans of expansion for RIL in the annual general meeting.He also put forth his plans to meet the increasing energy demands of the country and making India energy import independent. RIL owner has a stake in the port and power companies by this newly created holding company known as Reliance Industries Holding Private Limited (RIHPL). This company has Rs 31,000 crore RIL shares. It provides the much needed financial backing to the port and power ventures to raise much needed funds.It also owns a huge stake of about 1,400 km gas pipeline that connects gas fields in Andhra to Gujarat. According to analysts, the power and port companies will have the upper hand as the companies are eligible for the incentives announced by Finance Minister P Chidambaram in the Union Budget 2013. The government will give 15 percent investment allowance to companies which plan to expedite their productivity in the next two years.