RIL Sets Capex For 5 Years At Rs 35,000 Cr

Mumbai, April 29 | Updated: Apr 30 2004, 05:30am hrs
Reliance Industries Ltd (RIL) has announced a capex of Rs 35,000 crore for the next five years. The biggest investment, to the tune of Rs 15,000 crore, would be in the development of its KGD-6 basin off the Andhra Pradesh coast and transportation of gas from the wells.

The other capex programme includes Rs 4,000 crore for exploration and production, Rs 7,000 crore for setting up retail outlets, Rs 6,000 crore in petrochemicals and Rs 3,000 crore in modernisation. The company expects 10 per cent of its margins in future to come from the exploration and production business. Mr Ambani added that the company expects enhanced returns from its power projects and energy business.

RIL vice-chairman and managing director Anil Ambani added that the aggregate capex over the next five years would be 50 per cent of aggregate cash flow. This was higher as compared to the last five years where the capex was 40 per cent of the aggregate cash flow.

Mr Ambani said that the company would fund its expenditure through internal accruals and debt. However, the company does not feel the need for new equity.

The companys total assets is Rs 71,157 crore. The net worth of RIL as on March 31, 2004 stands at Rs 34,452 crore as against Rs 30,326 crore the previous, an increase of 14 per cent.

RIL holds the largest exploration acreage amongst public sector oil companies in India with 31 domestic and one overseas block. With ten wells under its KGD-G block, Mr Ambani added that two wells were drilled during the year and both the wells have struck gas. He added that the extent of discovery is being ascertained. The company is also carrying out an appraisal programme in the Yemen block.