Reliance Industries Ltd has zeroed in on Singapore-based infrastructure firm InfraCo to offload 45 per cent stake in its Jhajjar SEZ. Spread out over 25,000 acres, the Rs 30,000-crore project located in Haryana is majority-owned by RIL, with 10 per cent held by the Haryana State Industrial and Infrastructure Development Corporation.
If the deal goes through, RIL’s holding in the project will come down to 45 per cent. FE was the first to report RIL’s in-principle decision to offload stake to a strategic partner for capital support. This would be the first time the Mukesh Ambani-led company inducts a partner for holding a major stake in any of its ventures.
The induction of InfraCo is strategically important for RIL, as the Singapore-based company has the ability to share risks associated with the infrastructure project, as it would take years for its income streams to turn robust. InfraCo funds early-stage, high-risk costs by taking an equity stake in the project and making decisions that will lead to socially responsible and successful construction and operation. In the past, IL & FS and Mitsui have also reportedly been in the fray for a strategic stake in the venture. RIL has sought Haryana’s permission to convert part of the project into an industrial model township, as it sees potential in the project as a real estate venture rather than a complete SEZ given various tax complications.
Source:http://www.indianexpress.com/news/InfraCo-may-buy-45-per-cent-in-Reliance-s-Jhajjar-SEZ/609620
Labels: Reliance, Reliance Group, Reliance Industries, RIL