Reliance Industries plans to invest Rs 78000 crore in energy projects in Jamnagar

Reliance Industries is set to invest $13 billion (Rs 78,000 crore) in energy projects, after it had recently revealed its plans to invest Rs 1.8 lakh crore across business by 2016. This includes a 400,000 barrels per day (bpd) crude refinery at its Jamnagar complex, Reuters reported today. This refinery will be used to refine cheap and heavy crude that is now more and mroe available in Asia.

Reliance Industries, controlled by Mukesh Ambani, operates the world's biggest refining complex in Gujarat. The two plants in Gujarat can process about 1.4 million bpd of oil. Reuters reporetd that the company had sought the approval of the environment ministry to invest Rs 77300 crore to build a new refinery and some polymer units. It also wwanted to shift a 450 megawatt power plant from gas based to coal based. The environment ministry had asked to Reliance to comply to certain conditions to get the nod for the projects. However, reuters could not confirm if further communications between the company and the ministry had been made.

The company has cash worth more than Rs 80,000 crore now, and can invest much of the cah for its 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.

Reliance Industries Limited (RIL)