Unveiling plans at the 24th annual general meeting of the company, Reliance group chairman and patriarch Dhirubhai Ambani ruled out any immediate merger between Reliance Industries and its petroleum associate, Reliance Petroleum. Shareholders ratified a resolution allowing the management to buy back the company's shares, which was approved at the company's last extraordinary general meeting.

Ambani spoke at length on issues that went beyond the company and addressed national economic concerns. Hewas confident that the sanctions imposed by the US would not have a significant impact on the economy.

The company has decided to install a new production line, in addition to the two lines being implemented, which will hike polypropylene output from 400,000 tonnes to 600,000 tonnes per annum. "This will be the world's single largest polypropylene plant and will rank Reliance as the fifth-largest manufacturer of polypropylene globally," Ambani said.

Dealers said that the centre is likely to mop up the entire amount. "There is unlikely to be any devolvement on the RBI as there is ample liquidity in the system," a debt analyst with a leading brokerage house said. The government seems to have factored the response to the fixed-rate repo while announcing the auction of the three new stocks.

The RBI had mopped up Rs 5,567 crore in the past two days through the repo window. The amount will come back to the system just before July 1. The market expects the RBI to fix the coupon of the three-year paper in the11.42-11.45 per cent range, five-year at around 11.60-11.65 per cent and the 12-year at 12.2 per cent. Last week, the Reserve Bank mopped up Rs 5,031 crore through the sale of two "tap" stocks of ten-year and six-year maturity at a coupon of 12.10 per cent and 11.75 per cent. The July 1 auction will complete Rs 40,531 crore worth of the centre's borrowing in the current fiscal out of its net borrowing programme of Rs 48,000 crore.