Business   

RIL, GAIL on hunt for petro hub

NEW DELHI: Mukesh Ambani-owned Reliance Industries Limted (RIL) and State-run Gas Authority of India Limited (GAIL) are on a global hunt and have shortlisted a dozen-odd countries including Qatar, Australia and Russia, for jointly setting up the proposed multi-billion-dollar petrochemical plant.

Both companies had recently signed a memorandum of understanding (MoU) to jointly set up such a massive project. Sources said that Qatar, Abu Dhabi, Bahrain, Vietnam, Australia, South Africa, Angola, Mexico, Russia and CIS (Commonwealth of Independent States) countries have been identified as areas where the two would explore jointly setting up a two million tonne chemical plant.

Both companies are also moving in for cooperation in distribution and marketing of petrochemicals, including product swapping.

“As there is huge demand for petrochemical products across the globe, it is therefore important that both the companies forge a relationship to make a global presence by setting up this massive complex in a gas rich country,” a senior GAIL official said.

Sources said that under the MoU, the two companies have decided to float a special purpose vehicle (SPV) with equal stake to set up the overseas petrochemical plant.

However, prior to the formation of the SPV, every opportunity for cooperation would be examined by a working group comprising representatives of both the companies, sources said. Wanting to get going with the project, both GAIL and RIL have set for themselves a three-year deadline for identifying the necessary site as well as commencing work on the project. RIL and GAIL already have an agreement for cooperation in the gas sector.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Short-selling by FIs, MFs allowed from February 1
Sensex, Nifty scale new peaks
OVL, Hindujas to tie up
‘Ensure spectrum availability for 3G’
Corporation Bank targets Rs. 1 lakh crore business
Sops for grid interactive solar plants
Industrialist Sadhan Dutt passes away
RIL, GAIL on hunt for petro hub
Rupee edges down
Exchange Rates
Bullion Rates
FM to meet PSB chiefs on Friday
Realty meet from Jan. 7
Steel majors raise HR coil prices
‘Review duty on CRGO steel’
TVS Motor’s exports double in December
Hyundai Motor sales up 9.2 p.c.
Ranbaxy to market cetirizine in U.S.
Avesthagen becomes a limited company
Bajaj Allianz infuses fresh capital
Sonata Software adds new client
Salem Steel implements CSR initiatives
Zicom appoints senior team members

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu