Archive for July, 2013

Reliance JioInfocomm to Launch Visiting Card Sized Personal Wi-Fi Devices for Reliance Retail

July 26, 2013

Reliance Industries Limited (RIL)’s fourth generation telecom arm, Reliance JioInfocomm will launch personalized Wi-Fi devices of the size of a visiting card for its sister company, Reliance Retail.

RIL is planning to capture a huge customer base of Reliance Jio from its retail arm evenbefore it is officially launched in the market. The upcoming telecom arm will be launched by the month of June in the next year which will focus mostly on providing mobile-based enterprise solutions for small-scale businesses besides traditional mobile services and voice over Internet.

Reliance Retail becomes the exact launch pad as it is expanding its cash and carry stores, with brand name Reliance Market that caters to local kirana owners, traders, caterers and hoteliers. In the previous quarter, Reliance Retail has experienced good returns on investment from its cash and carry stores segment. Its first store has been operational since 2011 in Ahmedabad that has a customer base of 1, 25,000 customers currently. Owing to the success of this store, Reliance Market has come up in Bangalore, Mumbai, Anand, Faridabad, Chennai and Guntur. In the annual general meeting, Mukesh Ambani spoke about the expansion of more such stores. There are plans to open 15 more stores by the end of this current financial year which will increase the customer base for the cash and carry business of the company to a million by the end of June next year.

Here in these stores, Reliance Jio will provide their personalized Wi-Fi devices to create hot-spots that will connect with various devices on high-speed data. It aligns with the idea of the telecommunication company to cater to small scale business owners with technology that can help in managing the store and inventory beyond limit.Another big advantage for Reliance Jio will be that Reliance Market will bring a captive customer base of about a million customers under one roof.

Apart from synchronizing with its own sister companies, the upcoming telecom brand is signing deals with other companies to build up its nationwide infrastructure. RIL will invest about $3 billion in the current financial year to launch its 4G network.

The telecommunication arm has also partnered with companies like Omnitech, Verizon and Google. Omnitech InfoSolution is an information technology outsourcing and management services company that provides business-to-business solutions, while Verizon is a mobile service provider that offers products like Wi-Fi, wireless, internet television and Long Term Evolution (LTE) technology based mobile devices. Google will provide voice over internet services for JioInfocommm.

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RIL’s subsidiary gets License For Shahdol-Phulpur Line

July 16, 2013

Reliance Gas Pipeline Limited (RGPL), a subsidiary of Reliance Industries Limited (RIL) has been granted license for constructing a 312-km pipeline from Petroleum and Natural Gas Regulatory Board (PNGRB). The pipeline will be used to transport coal gas produced from RIL’s Sohagpur block in Madhya Pradesh.

Mukesh Ambani led RGPL has been authorized to lay the pipeline from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh. The regulatory board sanctioned the license rights on 11th July. In the authorization letter, the path way for the pipeline has been mentioned. The pipeline will commence from Shahdol and culminate at Phulpur including areas like JaySingNagar, Beohari and Gurh. Furthermore from Phulpur, the same pipeline will meet with state-owned gas facility GAIL India Limited’s main Hazira- Vijaypur- Jagdishpur trunk gas pipeline. RIL envisions producing 3.5 mmscmd of gas from its Sohagpur (east) and Sohagpur (west) coal-bed methane (CBM) blocks in Shahdol, Madhya Pradesh from 2015.

The pipeline will have a capacity to transport 4.3 million metric standard cubic meters per day (mmscmd) of gas, out of which 0.875 mmscmd of gas will be available for any third party for open access on non-discriminatory basis. The connection of the pipeline to Hazira-Vijaypur-Jagdishpurtraunkgas line would enable consumers to get the gas.

“The entity (RGPL) is allowed a maximum period of 36 months from the date of issue of authorization letter for commissioning of the natural gas pipeline project,” said the PNGRB authorization letter dated 11 July. RGPL has already furbished a performance bond amounting to Rs 13.2 crore as a guarantee for timely commission of the project. The letter also mentioned that RGPL shall be required to take prior approval from the Board for “creation of any lien or charge or hypothecation on the assets of the natural gas pipeline to secure finances for the project and furnish details of utilization of funds.”

This is not the first time that RIL has won license to construct pipeline. Previously, MukeshAmbani owned Reliance Gas Transportation Infrastructure Limited (RGTIL) had won license to lay four natural gas pipelines. These pipelines stretched from Kakinada in Andhra Pradesh to Howrah in West Bengal, Chennai and Tuticorin in Tamil Nadu and Manglore in Karnataka in last October.

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RIL Stand to Benefit by Gas Price Hike from Sep 2017

July 9, 2013

Reliance Industries Limited (RIL) has found new natural gas and oil fields on its eastern coast offshore store in Krishna-Godavari river basins in the Bay of Bengal. However, the top-most private energy giant of the country will start reaping the benefit of doubling of natural gas prices only from September 2017 after these newer fields get operational.

The company will soon get complete approvals to bring its 16 discoveries in the KG-D6 block and another 6 in NEC-25 blocks near Orissa into production. The current production is of 85 million standard cubic metres per day from the fields contribute about 12-13 percent to the total domestic production of the country. Once the approvals for the complete production come for RIL, these new discoveries will add a minimum of 30 mmscmd of output to the total production from D1 and D3 fields in the KG basin block. RIL is preparing an integrated development plan to submit to DGH for approval.

The Cabinet Committee of Economic Affairs (CCEA) approved a new pricing formula based on the average of the prices of imported liquefied natural gas (LNG) into India and the weighted average of gas prices in North America, Europe and Japan. This formula will be effective on April 1, 2014 for a period of five years, with the price being revised quarterly.

The price was also indicated in the Annexure that the Oil Ministry attached to the main Cabinet note on pricing of domestic gas as per a formula suggested by the Rangrajan panel. This hike in price will help monetize discoveries which are not able viable at current rates. The windfall gain for RIL will begin from 2017-18 once the gas flow from the new fields starts. The Ministry stated in a statement, “The present price of USD per mmBtu has not been found to be feasible and the Ministry is not approving the development plan for the lack of commercial viability. Around 3 trillion cubic feet of gas reserve is waiting to be exploited.”

The gas price hike will lead to higher gas production and will take India nearer to energy sufficiency. According to a recent announcement made by Petroleum ministry M.Veerapa Moily said ,” We are working with a programme that by 2020, 50 percent of import of petroleum should be stopped and 75 percent imports should be stopped 2025. By 2030, the country must become self sufficient in petroleum.”

Mukesh Ambani, head of RIL, in the annual general meeting also stated that RIL aspired to reduce the country’s dependency on energy imports. The company is striving to optimize its resources to make India import-independent.

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