RIL's infocom initiative, to invest Rs. 14,000 cr.

By Our Staff Correspondent

MUMBAI, JUNE 13. Reliance Industries Ltd. (RIL) plans to invest over Rs. 14,000 crores in infocom initiatives over the next two years.

Mr. Dhirubhai Ambani, chairman, RIL, while speaking at the company's annual meeting here today, said RIL's investments in the infocom sector would exceed those made by Reliance Petroleum which is at around Rs. 14,000 crores. The company is planning to announce a structured IT plan soon.

Mr. Ambani said RIL was promoting a number of independent power projects in the country and planned to achieve capacity of 10,000 MW over the next five to 10 years. It planned to create an all- optic Internet Protocol-based broadband network, covering 115 cities in India. It was at an advanced stage of discussions with leading global companies in the new economy sectors for alliances across the entire digital value chain.

Regarding RIL's e-enabling drive, Mr. Ambani said the company planned to develop an Internet-based exchange for trading in chemicals.

On Reliance's open offer to acquire 20 per cent stake in BSES, Mr. Ambani said BSES was India's largest electric utility and RIL was its single largest private sector shareholder in that company. He expressed confidence regarding creation of substantial value for shareholders of both companies through acceleration of growth plans for the company.

In the telecom sector, RIL's cellular services now cover 36 cities with a subscriber base of 70,000. The company expects to expand coverage to over 90 cities and double subscriber base over the next one year or so. Also, a state-of-the-art, broadband network for Gujarat is under implementation.

With an increased focus on oil and gas, a revised development plan for increasing production from the Panna, Mukta and Tapti fields is in an advanced stage of preparation. The estimates for recoverable reserves from the Panna and Mukta fields have been revised by 28 per cent and that of gas reserves of Tapti by 200 per cent. The 14 off-shore exploration blocks awarded by the Governmenthas made Reliance the largest private player in the sector.

Mr. Ambani also categorically ruled out any merger of RIL and Reliance Petroleum (RPL) into one entity. RPL is expecting to achieve a turnover of Rs. 25,000 crores in the current year.

Mr. Ambani also said the proposed share-buy-back programme is aimed at distributing a portion of the company's cash flow to the shareholders in a tax-efficient and investor-friendly manner. He said the proposed employee stock option plan would hopefully help in retaining and motivating the best talent in the company. RIL is targeting exports of Rs. 2,500 crores for the current year. Mr. Ambani said the company was ``faring well'' in the current year and would declare its first quarter results on July 20.

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