The Board of Reliance Industries Ltd (RIL) has decided to implement a Scheme of Arrangement to transfer Gasification Undertaking into a Wholly-Owned Subsidiary (WOS).
The Gasification project at Jamnagar was set up to produce syngas to meet the energy requirements as refinery off-gases, which earlier served as fuel, were repurposed into feedstock for the Refinery Off Gas Cracker (ROGC).
“This enables production of olefins at competitive capital and operating costs. Syngas as a fuel ensures reliability of supply and helps reduce volatility in the energy costs.,” RIL said in a late night statement on Wednesday.
Syngas is also used to produce Hydrogen for consumption in the Jamnagar refinery, it added.
RIL plans to have a portfolio which is fully re-cyclable, sustainable and net carbon zero.
“This will be achieved by transitioning to high value materials and chemicals with renewables as the source of meeting its energy requirements,” it said.
RIL said its Board has approved a Scheme to transfer the Gasification Undertaking as a going concern on slump sale basis for a lump sum consideration equal to the carrying value as on the Appointed Date.
“The Scheme will also enable RIL to evaluate unlocking the value of syngas, with a collaborative and asset-light approach involving (a) Induction of investor(s) in the gasifier subsidiary and (b) Capturing value of upgradation in RIL through partnerships in different chemical streams,” it said.
The appointed date of the Scheme would be March 31, 2022 or such other date as may be determined by the Board.
The Scheme will require approval of Stock Exchanges, Creditors, Shareholders, NCLT and other regulatory authorities, it added.