Billionaire Mukesh Ambani-owned Reliance Industries has decided to withdraw the proposal to merge subsidiary Reliance New Energy Limited (RNEL) with itself and, instead, let the venture undertake the renewable energy venture of the conglomerate.
The development comes after a board meeting reviewed the new energy business and investment structure last week.
"Based on a review of the new energy / renewable energy business and investment structure, the Board has decided that the new energy / renewable energy business should be undertaken through RNEL and the Scheme be withdrawn," the oil-to-telecom conglomerate said in a regulatory filing.
In May last year, the company had said that Reliance New Energy (RNEL) would be amalgamated as the renewable energy initiatives and be undertaken by RIL directly. RNEL is a wholly-owned subsidiary of RIL.
However, the scheme presently pending with the National Company Law Tribunal (NCLT), Mumbai Bench for approval, has now been decided to be withdrawn.
Reliance Industries Chairman Mukesh Ambani had in 2021 announced the conglomerate’s ambitions to recast itself increasingly as a clean energy enterprise, powered by huge investments as it braces for a new future.
Ambani had revealed the plans lined up to pursue RIL’s clean energy goals, which will entail an investment of Rs 75,000 crore over three years. For its clean energy initiatives, RIL will invest over Rs 60,000 crore over the next three years and invest an additional Rs 15,000 crore in value chain, partnerships and future technologies, including upstream and downstream industries, Ambani had said in the annual report for FY22.
Meanwhile, shares of Reliance Industries on April 21 closed 0.14 percent higher at Rs 2,348.90 apiece on the BSE.
On April 21, India's biggest company in terms of valuation reported net profit, attributable to the owners of the company, at Rs 19,299 crore for the March quarter of the financial year 2022-23, up 19 percent from the year-ago period. The profit beat estimates driven by a strong performance across businesses.
Gross revenue from operations of India's most valued company came in at Rs 2.39 lakh crore, registering a year-on-year rise of 2.8 percent.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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