Reliance Industries (RIL), led by Mukesh Ambani, announced in an exchange filing on Wednesday that the firm will restructure and repurpose gasification assets after the board of RIL agreed to undertake a Scheme of Arrangement to transfer Gasification Undertaking into a Wholly-Owned Subsidiary.
As a result, the board has authorized a Scheme to sell the Gasification Undertaking as a going concern on a slump sale basis for a lump sum payment equivalent to the carrying value as of the Appointed Date.
“The Scheme will also allow RIL to evaluate unlocking the value of syngas through a collaborative and asset-light approach involving (a) induction of investor(s) in the gasifier subsidiary and (b) capturing the value of up-gradation in RIL through partnerships in different chemical streams,” the conglomerate added.
The Scheme’s effective date would be March 31, 2022, or such other date as specified by the Board. The Scheme will need to be approved by stock exchanges, creditors, shareholders, the NCLT, and other regulatory bodies.
“The Jamnagar gasification project was established with the goal of producing syngas to meet the energy requirements as refinery off-gases, which formerly served as fuel, were repurposed as feedstock for the Refinery Off Gas Cracker” (ROGC). “This allows us to produce olefins at competitive capital and operating costs,” RIL stated in an exchange filing.
RIL aims to have a portfolio that is totally recyclable, sustainable, and has a net carbon footprint of zero. This will be accomplished by shifting to high-value materials and chemicals, with renewables serving as the primary source of energy. Overall, these changes will assist in significantly lowering the carbon footprint of the Jamnagar complex, according to the report.