Mega projects set for rollout key to Reliance’s global play

Our Bureau MUMBAI

    RELIANCE Industries (RIL) will soon join the big league once its refinery and offshore gas fields begin production, chairman Mukesh Ambani told shareholders on Thursday.
    "Reliance is now on the verge of a quantum leap in one of its several growth platforms — energy. Two very large projects founded on the energy growth platform will be commissioned in the second half of this financial year. They are historic milestones in Reliance's leap to global heights," Mr Ambani said at the company's 34th annual general meeting in Mumbai.
    The $5.7-billion refinery at Jamnagar Export Refinery Project (JERP), with a capacity of 27 million metric tonnes per annum, will be the largest refinery site in the world once it starts before December this year. Commissioning of oil and gas production systems will amplify Reliance's stature in deep-water oil and gas space, Mr Ambani stressed. The East-West gas transmission system, built by Reliance Gas Transportation Infrastructure (RGTIL)and which connects major Indian towns and cities, is already setting new benchmarks.
    "These projects will enable Reliance to become a major energy player. They are set to make a material difference to the global energy industry. And they will help transform India's energy security. In the process, Reliance is poised for a historic leap. From India's number one company to the world's leading energy giant."
    Analysts, however, are more cautious in their assessment. Merrill Lynch in its latest research report dated June 10 on oil and gas has kept RIL's exploration and production valuations unchanged. The report said, "RIL-RNRL litigation could delay D-6 gas production start and ramp-up. Other than the execution risk, the biggest risk with the D-6 production and rampup is the RIL-RNRL litigation."
    The Bombay High Court has restrained RIL from selling gas from Krishna Godavari (KG) basin to third parties. The next hearing is scheduled on July 22 when the court resumes after vacation. RIL shares on the BSE marginally gained 1% or Rs 22 to close at Rs 2281.75 over the previous day's close. The shares have gained 1.5% in the past one week and have lost over 10.5% in the past one month.
'If you don't like
    RIL stock, sell it'
MUMBAI: If you don't like the Reliance stock, sell them away," an irate Mr Ambani told a shareholder at Thursday's AGM pestering him about bonus shares. The shareholder argued that Mr Ambani is spending Rs 8,000 crore in building the world's costliest house, another Rs 600 crore to gift an aircraft to his wife and when it comes to rewarding the shareholders through bonus issue, he turns a miser. Mr Ambani tried to pacify him and invited him to have a cup of tea, but the shareholder carried on and warned Mr Ambani that he may come down to the earth one day. The shareholder also alleged that Mr Ambani did not stick to his words and has not awarded a bonus despite having promised one in the past few AGMs. This further angered Ambani and he banged on the dais and said, "Don't speak a lie at a corporate AGM. This is not a political meeting. The proceedings of every year AGM are recorded and I never promised any bonus issue. It is a decision to be taken by the RIL board. Corporates mein aisa hi chalta hai... (This is the way how corporates function)." — Our Bureau

RIL chairman, along with his wife Nita Ambani, at the company's AGM in Mumbai — Nalin Solanki