Five years after disrupting the telecom space with the launch of Jio, Reliance Industries Ltd (RIL) on Thursday announced yet another game-changing move — a mega entry into green energy.
The company is planning to get into solar power generation and manufacturing, hydrogen production, e-fuels, and energy storage under its “New Energy and New Materials” division.
It will also set up a platform for renewable energy project finance to source long-term global capital for investment in these sectors.
The three-pronged plan will cumulatively involve an investment of Rs 75,000 crore over three years, Mukesh Ambani, chairman, RIL, announced during its annual general meeting (AGM) on Thursday. The AGM was also addressed by his wife, Nita Ambani, and his children, Akash and Isha.
Response to the RIL stock was, however, not so enthusiastic. It was the top loser among index stocks and ended 2.35 percent lower at Rs 2,153.35 on the BSE. Some of this decline can be attributed to the stock’s 12 per cent rise in the past one month. In comparison, the S&P BSE Sensex was up 3.3 per cent during this period.
Under the plan, RIL will set up a Dhirubhai Ambani Green Energy Giga Complex, spanning 5,000 acres, in Jamnagar, Gujarat, at Rs 60,000 crore while another Rs 15,000 crore will be invested in value chains, partnerships, and future technologies, including upstream and downstream industries.
RIL will create a capacity of producing solar power of 100 Gw in 10 years. The ambition is stunning as India’s installed capacity of solar power is now 40 Gw (including ground-mounted and rooftop).
“Reliance will thus create and offer a fully integrated, end-to-end renewables energy ecosystem,” said Ambani.
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