Reliance plans to raise $2 billion
Reliance Industries Ltd. plans to raise $2 billion through External Commercial Borrowings and another $3.2 billion from internal accruals to fund its $5.2 billion investment in the area. Reliance has one of the biggest gas discoveries in the Krishna-Godavarai Basin off the coast of Andhra Pradesh.
P.M.S. Prasad, president, oil and gas, of RIL said that RIL had signed contracts worth $.4.5 billion to develop the huge gas fields in the KG Krishna-Godavarai Basin. He said that the gas would be available to consumers by June 2008, and they were on target to meet that. The gas is expected to be pumped from RIL’s offshore fields.
Mr.Prasad said that Reliance Industries would be building a 1,400 km pipline from Gadimoga to Jamnagar, where it has a 27 million tonne refinery and is building a second one.
Mukesh D.Ambani, chairman of Reliance Industries Ltd, had said that the gas will first be supplied to Andhra Pradesh. Mr.Prasad said RIL was comitted to supplying all the gas that Andhra Pradesh needed, but the price-discovery needed to done through tender. He said that RIL had no plans to spin off oil and gas business, including the giant D6 block.
According to reports, RIL is understood to be in advanced stage of discussions with North American plastics and pertrochemicals major Nova Chemicals as part of its bid to spread wings to foreign shores.
