Media reports indicate that the various businesses of Reliance Industries (RIL) may get Rs 179,000 crore investment in the next five years.
Of the total amount, the firm may invest about Rs 151,000 crore towards core oil, gas, refining and petrochemical sectors in the next five years; the rest would go towards the telecom and retail sectors, which analysts term “non-core”, reports indicate.
The Mukesh Ambani-led firm plans to invest such a huge amount in the oil and gas sector on the back of improving prospects. It may be noted that crude oil prices are falling in the international market and government is also taking steps to de-regulate the pricing of diesel in the local market.
The partial de-regulation of diesel pricing may enable the company to reopen its petrol pumps across India. As of now, the company is unable to compete with government-owned companies, as these companies get subsidy on diesel sales.
Amidst declining output in the Krishna-Godavari gas fields, the company plans to invest Rs 27,096 crore on exploration and production in the area.
It may be recalled that natural gas production from its KG-D6 gas fields declined to a new low of 19 million cubic metre a day in the March quarter, even as the government and the company fought over the expenditure incurred on the fields.
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