For the first time ever, Reliance Industries (RIL) will have to put all its related party transactions (RPT) to vote at the business conglomerate’s annual shareholders’ meeting convened next week. This follows a change in regulation that came into effect on April 1.

RIL will seek approval for material RPTs, including transactions with its subsidiaries (other than wholly-owned), joint ventures, promoter group, and between two subsidiaries. The company, helmed by billionaire Mukesh Ambani, will seek approvals for all material RPTs for FY23, and subsequent four years (FY24, FY25, FY26 and FY27), according to its annual report.

RIL will hold its AGM on August 29. Earlier, markets regulator Sebi mandated companies to get approval from shareholders for RPTs that are below Rs 1,000 crore and amounting to 10% of annual consolidated turnover of a company in a financial year.

The biggest of RIL’s RPTs was the one between Reliance Jio Infocomm (RJio) and Reliance Retail, both subsidiaries, which stood at Rs 1.05 trillion in FY22. This would be about 14.6% of the Mumbai-headquartered conglomerate’s annual consolidated turnover for the fiscal ended March 31.

Another RPT that would be put to vote at the AGM would be the deal between Reliance BP Mobility (RBML), in which RIL holds a 51% stake and the rest is held by BP. RIL estimates sales to the JV to be worth Rs 68,300 crore in FY23, and up to Rs 1.34 trillion in each of the four subsequent financial years.

RIL also has RPTs with India Gas Solutions, an equal JV with BP, for sourcing and sale of natural gas in India. The deal comprises a long-term supply agreement for natural gas with RIL.

Also read: ONDC inks MoU with J&K’s trade promotion body to boost e-commerce adoption in UT

Yet another RPT is with Reliance Sibur Elastomers, the JV in which RIL holds a 74.5% stake. The firm is setting up an integrated butyl and halo butyl rubber plant at Jamnagar, and estimates sales are of Rs 2,600 crore in FY23. This could further rise up to Rs 3,400 crore for each of the subsequent four financial years.

Further, RIL has provided guarantees to RJio, which has several RPTs with RIL’s promoter and promoter group companies. The company estimates to provide guarantees worth Rs 2,100 crore to RJio till FY27 and will buy telecom services worth Rs 200 crore in FY23.

RIL also has an RPT with Jamnagar Utilities & Power, which supplies electricity, steam and water to RIL’s refineries and petrochemical plants. RIL, on its part, provides fuel and other utilities to the power company. RIL expects a Rs 5,200 crore per annum bill from the companies for the next five years and to buy fuel worth Rs 500 crore of fuel per annum from it.

The company also has similar RPTs with Sikka Ports & Terminals, which provides captive port infrastructure to RIL’s Jamnagar complex. A number of RIL’s subsidiaries also have RPTs between themselves.

These include RPTS between Reliance Retail and Reliance International, RJio and Reliance Retail, Jio Platforms And Reliance Retail, Reliance Retail Ventures and Reliance Brands, and Reliance Projects and Property Management Services, among others.

All RPTs are reviewed by independent accounting firms for arm’s-length pricing and benchmarking with similar transactions, RIL said in its presentation.