Reliance Industries managing director Anil Ambani, at the sidelines of a press conference on Wednesday, said the company is ready to kick off the acquisition exercise in the oil sector as and when the government decides to hand over management control of these oil PSUs to the private sector.

In what is the first official statement from Reliance regarding its long-term mega plans in the oil sector, the company said that in the post-2002 phase, it will also look at attracting franchisees of existing oil PSUs as less than 50 per cent are owned by the state undertakings.

Ambani, at the press conference, said: "For the last two years we have been going through a phase of organic growth. We are now set to grow through acquisitions and fresh capacity creation."

"The group will continue with its policy of value-enhancing acquisitions and fresh capacity creation. Reliance Petroleum will explore all available options and choose the optimal path for its growth in the sector," Ambani said.

"We are participating in the privatisation of Indian Petrochemicals Corporation as it may enable us to grow in petrochemicals sector. Similarly, we may choose the same route in the oil sector as well," Ambani said.

Reliance Petroleum has already put in place a marketing alliance with three oil PSUs, wherein 50 per cent of the non-captively used products will be marketed by Indian Oil Corp (IOC) and the balance by BPCL and HPCL.

Private sector oil companies had till recently been barred from marketing their own products, which had forced them to ally with public sector oil marketing companies to sell their products.

Private sector oil companies, investing more than Rs 2,000 crore in their refinery projects, have now been allowed to market their own products. Attracting franchisees of the oil PSUs will also enable Reliance Petroleum to set up its own marketing infrastructure.

Reliance Petroleum, having invested over Rs 14,000 crore in its 27 million tonne refinery in Jamnagar (Guajrat), have sought permission from the petroleum ministry to market its own products, but is yet to receive clearance.

Ambani's statement assumes significance in the wake of the Nitish Sengupta Commitee recommendations which has said that stand-alone refineries like IBP, Madras Refineries (MRL) and Cochin Refineries (CRL) be allowed to merge with stronger marketing companies like IOC, HPCL or BPCL.

The government has announced that it will dilute its stake in oil PSUs to below 51 per cent. While IBP, CRL and MRL are on top of the agenda, divestment of stake in the integrated oil companies BPCL and HPCL will follow later.

The Centre has kicked off the process in GAIL and IOC, but another decision to raise funds through the cross-holdings route, as done last year in ONGC, IOC and GAIL, will put a stumbling block in Reliance's growth plans.