Reliance Industries to enter Ship Building

Reliance Industries (RIL) is reportedly entering shipbuilding and dredging business with two separate companies. It plans to invest around $1 billion each in two companies and has begun talks with international majors for a strategic tie-up for the dredging business. The shipyard will come up at Rewas, where RIL is setting up a mega port and a special economic zone (SEZ). The company is also looking at a ship repair yard at Kakinada for servicing offshore/platform vessels and rigs.

Separately, the empowered group of ministers have approved the pricing formula proposed by Reliance Industries (RIL) for its Krishna-Godavari (K-G) basin gas, with minor modifications that reduced the delivered price of gas. The revised formula lowers the proposed price of the gas at Kakinada to $4.20 per million British thermal unit (mmBtu) from $4.33 mmBtu that was proposed by RIL. The price at which RIL will sell its gas from the KG basin to consumers will be valid for five years, after which it will be open for revision.