Reliance to invest Rs 75,000 crore in green energy, target to generate 100,000 MW
Reliance will invest for solar energy
- Reliance Industries has divided its business into different segments.
- Reliance will sign a $15 billion deal with Saudi Aramco.
Mumbai : Veteran industrialist Mukesh Ambani on Thursday announced an investment of Rs 75,000 crore over the next three years to take on Reliance Industries Group’s new ambitious and innovative role in the green energy sector. He presented plans to set up 1 lakh MW of solar power generation capacity by 2030 and make Jamnagar in Gujarat a major center for manufacturing technology and equipment in the region. Ambani also announced the launch of the most affordable smartphone globally, jointly developed by Google- and Reliance Jio. He also expressed hope of completing a $15 billion deal with Saudi Aramco this year.
Reliance Industries Chairman and Managing Director Ambani told the company’s 44th Annual General Meeting with shareholders that Reliance will set up four large-sized plants for solar cells, batteries for energy storage, fuel cells and green hydrogen at Jamnagar in Gujarat. The company, which operates in the oil to telecommunications sector, will invest in a carbon fiber plant along with setting up at least 100,000 MW of solar power generation capacity by 2030.
Ambani said 51-year-old Yasir Othman Al-Rumayan, chairman of Saudi Aramco and head of PIF, a leading asset fund there, will join the board of Reliance Industries as an independent director. His appointment comes ahead of the completion of the deal to sell a 20 percent stake in the company’s oil-chemicals business unit (oil refinery, petrochemical plant and retail fuel business) to Saudi Aramco. He said that we look forward to welcoming Saudi Aramco as a strategic partner in the O2C business…I expect our partnership to be formalized soon this year. The deal was initially scheduled to be completed in March 2020 and was valued at $15 billion.
Reliance Industries has divided its business into different segments. While Jio Platforms is affiliated with the company’s digital and telecom arm, the retail sector is a separate entity. Whereas oil refining and petrochemicals have been kept under O2C (oil-chemical) business. Ambani also announced the launch of a cheaper phone prepared in collaboration with Google. Its purpose is to accelerate the adoption of 2G to 4G. However, its price information was not given.
He said that to make India ‘2G free’ a very cheap 4G smartphone is necessary. The new smartphone will be equipped with features and apps from Jio and Google. He said that there are still 300 million phone users in the country who are unable to leave the inefficient 2G service. A major reason for this is the cost of 4G smartphones.
Alphabet CEO Sundar Pichai said via video conference that the affordable smartphone from Google and Jio is built specifically for India and will open up new possibilities for millions of new users who will be experiencing the Internet for the first time.
The handset will be available from September 10.
Making an announcement in the area of clean energy business, Ambani said that in the next three years, we will invest Rs 60,000 crore in manufacturing and other related activities in the green energy sector. Through this, Reliance will create and offer a fully integrated and customized energy environment.
Apart from this, we will spend Rs 15,000 crore on units and necessary infrastructure facilities for manufacturing of raw materials and other essential products of these factories, Ambani said. Thus, the total initial investment from our own internal resources in the new energy business will be Rs 75,000 crore (over $10 billion) over three years, he added.
Ambani said the company has started development of the Dhirubhai Ambani Green Energy Giga Complex (Green Energy Grand Complex) in Jamnagar on 5,000 acres. It will be one of the largest integrated renewable energy manufacturing facilities in the world. Ambani said that Reliance will install 100,000 MW of solar power by 2030 and contribute to capacity creation. In this, rooftop solar plants and village decentralized solar plants will be a major contributor.
He said that Jamnagar was the center of development of our old energy center, now it will also become the center of development of new energy business. Ambani announced the creation of two additional departments within the company—the Department of Renewable Energy Project Management and Construction and the Department of Renewable Energy Project Finance. He said that all these steps will help in realizing India’s decentralized green economy. Ambani also said that if we are able to use solar energy, India will become an exporter of clean energy from an importer of fossil fuels ie crude oil.
The company, which derives 68 per cent of its total revenue from the hydrocarbon energy business, had set a net zero carbon emission target in 2020 for the next 15 years, ie 2035. The company has taken this step at a time when all the world’s leading energy companies are under pressure to move towards low carbon emissions to help protect the environment.
Ambani said that last year I had set a target of net zero carbon emissions by 2035. Today I am happy to present an ambitious strategy and plan to implement it. Fossil (coal, petrol and diesel) fuels fueled economic growth for nearly three centuries. We cannot continue this for very long now.
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