Mukesh's bid to sell stake in pipelines hits hurdle
MUMBAI: Reliance Industries (RIL) chairman Mukesh Ambani's plan to sell a stake in Reliance Gas Transportation Infrastructure (RGTIL) may have hit a hurdle with the petroleum ministry deciding to cancel licences to lay four natural gas pipelines citing inordinate construction delays.
The 2,175-km pipelines connect Kakinada to Howrah in West Bengal, Chennai to Tuticorin in Tamil Nadu and Mangalore in Karnataka. RGTIL - a personal investment of Mukesh - had mandated JP Morgan, Citigroup and SBI Capital Markets for the stake sale.
RGTIL had received expressions of interest from a dozen buyers, including state-owned GAIL India and Oil India, and some overseas firms. But Oil India appears to have backed out over differences on the quantum of stake on offer. RIL chairman is unwilling to offload majority shares.
An RIL source said: "We have not yet received any such communication from the ministry and so will not be able to comment." RGTIL supplies gas from India's East Coast to West Coast through 48-inch diameter pipeline, which has a capacity to supply up to 80 million metric standard cubic metres of gas per day (mmscmd).
"The petroleum ministry's move to cancel licences will definitely impact buyer sentiment. However, RTGIL has only one operating asset that is East-West pipeline, which is operating at one-third of its capacity."
MUMBAI: Reliance Industries (RIL) chairman Mukesh Ambani's plan to sell a stake in Reliance Gas Transportation Infrastructure (RGTIL) may have hit a hurdle with the petroleum ministry deciding to cancel licences to lay four natural gas pipelines citing inordinate construction delays.
The 2,175-km pipelines connect Kakinada to Howrah in West Bengal, Chennai to Tuticorin in Tamil Nadu and Mangalore in Karnataka. RGTIL - a personal investment of Mukesh - had mandated JP Morgan, Citigroup and SBI Capital Markets for the stake sale.
RGTIL had received expressions of interest from a dozen buyers, including state-owned GAIL India and Oil India, and some overseas firms. But Oil India appears to have backed out over differences on the quantum of stake on offer. RIL chairman is unwilling to offload majority shares.
An RIL source said: "We have not yet received any such communication from the ministry and so will not be able to comment." RGTIL supplies gas from India's East Coast to West Coast through 48-inch diameter pipeline, which has a capacity to supply up to 80 million metric standard cubic metres of gas per day (mmscmd).
"The petroleum ministry's move to cancel licences will definitely impact buyer sentiment. However, RTGIL has only one operating asset that is East-West pipeline, which is operating at one-third of its capacity."
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